In this chapter, I focus on the process of China’s increasing connection with other nations within the global system and analyze the impact of globalization on China’s domestic legal, economic, and political systems. China’s economic, political, and legal reforms in the new era were made possible through, or perhaps mandated as a result of, China’s increasing integration into the global system. Although not without some significant problems, the Chinese government has paced its integration, managed its domestic reforms, and gradually learned to become a key player in the global marketplace. In the discussion that follows, I first present a theoretical framework of the world-economy system and then discuss China’s reactions to globalization. Next, I analyze the impact of China’s becoming a participant in the globalized marketplace, pay special attention to China’s decision to join the World Trade Organization (WTO), and analyze the potential impact that being a major player in the WTO may have on China’s further development. Finally, I examine how China’s integration into the global system has led to political and legal transitions at home.