The 3 major functions of the World Trade Organization (WTO) which include trade negotiation, trade supervision, and dispute settlement have been confronted with troubles in recent years. Besides, unilateralism and protectionism continue imposing negative impacts on the multilateral trading system. WTO reform is urgently needed to adapt to the changing international political and economic landscape. At present, major members have proposed several WTO reform plans. However, differences among the members on issues such as dispute settlement mechanism, special and differential treatment, negotiation, and transparency turn out to be prominent, impeding further reform of WTO. The multilateral trading system is affected by protectionism, regionalism, and constraints from the US, which makes its prospects complicated. While adhering to multilateralism and free trade, China faces some challenges in promoting WTO reform. Therefore, when proposing WTO reform plans, China should also accelerate the pace of domestic reform and actively coordinate all parties to revive the multilateral trading system with WTO playing a core role.