The crisis in which the World Trade Organization is in could be best understood as the product of the rise of China and the incredible power rivalry that it has sparked with the United States. The WTO was founded in 1995, at a time when the United States was the world’s sole superpower, and expectations were high that democracy was in the ascendancy. By 2013, however, with the ascension of Xi Jinping to the leadership of the Chinese Communist Party, it was clear that China was growing increasingly authoritarian and illiberal. From Washington’s point of view, the WTO, with its ability to enforce the rules regarding international trade through its Appellate Body, rendered the United States vulnerable to complaints lodged by China and its allies in the developing world. The administration of Donald Trump simply continued President Barack Obama’s policy of weakening the WTO’s dispute-resolution function. The Biden administration continued the calls for reform in the dispute settlement rules. Consequently, the most probable way the WTO can restore its powers was by the United States and China reaching an agreement on reforms. The success of these negotiations depends on Washington addressing the Chinese threat to its hegemony separately from updating the WTO’s rules and structures. The interests of all other WTO members must take a back seat in these discussions, given the economic and military dominance of the world’s two wealthiest and most powerful nations. The article concludes with a sketch of possible reforms to which the powerful rivals can agree.