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Purpose

This paper examines the challenges facing China's employment relations after its WTO accession and consequently, the implications for further reform.

Design/methodology/approach

Theoretical questions are considered in relation to the debate on globalization vs the nation‐state over political, economic and social issues. By examining the challenges from both internal and external sources, the paper investigates the impact on the employment relations system at both macro‐ and micro‐levels.

Findings

The major finding of this paper is that the current system of employment relations system in China is in the process of transformation towards a “hybrid” model combining authoritarianism and neo‐corporatism.

Originality/value

This paper provides the most recent analysis on the impact of WTO accession on the changing pattern of employment relations in China. It helps people who are interested in transitional economy in general and in China in particular to have a better understanding about the transformation of employment relations system under the influence of different forces.

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