China Accuses US of Destroying Multilateral Trade System in New Report
BEIJING – The Ministry of Commerce of China has released anew report accusing the United States of destroying the multilateral trade system and engaging in unilateral trade bullying. The report, titled Report on theUS Fulfillment of WTO Rules Obligations, is the second in a series, following a similar report released in August 2023.
The report comprehensivelyreviews the US’s compliance with World Trade Organization (WTO) rules and provides a general assessment, highlighting China’s concerns about the US’s actions. It criticizes the US for implementing unilateral trade bullying tactics, manipulating industrial policies withdouble standards, and disrupting global industrial chains and supply chains.
The report states that the US has continued to disregard member expectations and act against WTO rules in the past year. It accuses the US of using the pretext of de-risking to generalize national security concerns, politicize and weaponize trade issues, escalate unilateral sanctions, frequently implement discriminatory measures, and continuously raise tariff barriers. These actions, according to the report, pose a serious challenge to the multilateral trade system and severely damage the common interests of WTO members.
Specifically, the report pointsto the US’s continued use of Section 301 tariffs, which have been ruled by the WTO as violating its rules. Despite the WTO rulings, the US has refused to cancel these measures and has instead further increased tariffs on Chinese imports, launched new investigations, and initiated new trade disputes. The report states thatthese actions further expose the US as a destroyer of the multilateral trade system.
The report also criticizes the US for its use of national security as a pretext to unfairly suppress foreign companies and impose unilateral sanctions and long-arm jurisdiction on other countries’ normal trade relations. This, according tothe report, is a typical example of unilateralist bullying.
The report further accuses the US of exaggerating the threat of Chinese overcapacity while implementing numerous exclusive and discriminatory subsidy policies. It alleges that the US uses foreign investment security reviews, foreign investment restrictions, and export control lists to suppress and curb theindustrial development of other members, making it a manipulator of double standards in industrial policies.
The report also criticizes the US for pushing for discriminatory bilateral and regional cooperation arrangements, such as the Mineral Security Partnership, to create exclusive small circles and disrupt the global industrial landscape formed according to market rules.These actions, the report argues, harm the stability and healthy development of global industrial chains and supply chains, further exposing the US as a disruptor of global industrial chains and supply chains.
The report outlines China’s efforts, alongside other members, to correct the US’s violations and destructive behavior towards multilateralism. These efforts include upholding true multilateralism, actively promoting the restoration of the Appellate Body’s normal operation, firmly safeguarding the legitimate rights and interests of developing members, making good use of the WTO’s review and supervision functions, and maintaining the authority of the dispute settlement mechanism.
The report urges the US topromptly correct its wrong words and deeds, faithfully abide by WTO rules and its own commitments, and return to the rule-based, open, transparent, inclusive, and non-discriminatory multilateralist family. It calls for the US to work with other members, including China, to jointly promote the greater role of the multilateraltrade system in global governance.
The release of this report comes at a time of heightened tensions between the US and China over trade and economic issues. The report is likely to further escalate these tensions and could lead to more disputes between the two countries at the WTO.
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