China as a nation benefits from entry into the World Trade Organisation (WTO) but the effects are neither immediate nor uniform. Significant long-term benefits from WTO entry can be realised only if WTO entry acts as a catalyst for further and deeper systemic reform of the economy. Some workers benefit from the opening of foreign markets to Chinese goods but others are affected adversely by the increase in foreign competition in Chinese markets. This paper examines the impact of globalisation and WTO entry on China and how they affect state-labour relations.