Different views of state sovereignty will exert important influence on construction and operation of dispute settlement mechanism of regional trade agreement（RTA）. In the field of regional trade dispute settlement， state sovereignty elements concerning dispute settlement are mainly political sovereignty， judicial sovereignty and economic sovereignty. With the development of the regional economic integration process， the formation of dispute settlement mechanism in RTA has the dual characteristics of weakening and strengthening of state sovereignty. In the process of the construction of dispute settlement mechanism in RTA， China should correctly identify the sovereign power and sovereign rights， instrumental characteristics of sovereign rights， sovereignty transfer and sharing.