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The principal aim of this paper is to bring into analytical focus the institutional context of the escalation in cross‐border pollution in the Hong Kong/Pearl River Delta region.

The interplay between economic and ecological forces is highlighted against the backdrop of coordination failures in a loosely structured organizational setting.

It is apparent that powerful bottom‐up forces of economic integration are overwhelming the embryonic machinery hesitantly erected to minimize their adverse effects.

The heavily decentralized model relied upon to manage complex relationships within the Pearl River Delta region needs to be reassessed, with lessons drawn from other parts of the world, notably Europe, which is also confronting friction between the centre and periphery.

The underlying socio‐physical dynamics, fragile organizational façade and crucial policy choices are outlined in a systematic fashion, with intricate linkages carefully pinpointed.

The purpose of this paper is to shed light on the complex processes involving state sacrifice of essential values, including a measure of sovereignty, in return for economic benefits which are substantial but not to a point of overshadowing all else.

The research agenda is addressed by reviewing systematically the extensive theoretical and empirical academic literature on China's entry into the World Trade Organization and drawing appropriate conclusions about how the issue at hand should ideally be approached at this juncture.

Useful observations emerge regarding the classification of relevant factors, conceptual integration, analytical responses to problems arising in the context of accelerating economic integration across the globe and realistic model building.

Insights generated may enhance understanding of the interplay between the forces of globalization and nationalism and lead to a more enlightened management of the ensuing tension.

Critical assessment undertaken may pave the way for a less segmented and more grounded academic work on the subject.