The schedule gives China and the US just a few weeks to finalize the deal, especially since the Congress adjourns for the year in November. If China misses this opportunity, it will face even tougher entry requirements in the future. China could be locked out of the WTO for the next few years. Failure to clinch a deal will prove a major setback for China and the world. China's economic reform process and integration into the world economy will be slowed, or even derailed.
China lacks strong political and economic institutions.
Therefore, if new leadership with different political views comes to power, there is a high risk that the current course of liberal reform will be reversed. The country will be forced to abide by international rules and regulations. The liberalization of trade and finance will accelerate institutional changes. Greater international competition will improve economic efficiency, transparency, and predictability. Both China and the US must stop tactical posturing.