The formal study of the International Political Economy did not exist before World War II. In this report the origins of this study are explained. There is also a detailed history of the General Agreement on Tariffs and Trade and the subsequent creation of the World Trade Organization (WTO). Along with the creation of the World Trade Organization the WTO’s Dispute Settling Body was created. This Body helps to settle disputes between member nations and helps clarify and regulate the link between a nation’s political and economic agenda and the impact those have on the global community. Finally there is a discussion of United States Trade Policy with China and the impact of illegal Chinese subsidies on the United States’ domestic market. The United States Trade Representation (USTR) Office of China Affairs is responsible for filing disputes with the WTO Dispute Settling Body in order to ensure that Chinese policies and subsidies follow WTO trade regulations. In the global community it is important to understand the interconnectedness of domestic policies and economy with the global marketplace.