US violations of WTO rules exposed

China on Friday urged the United States to abide by World Trade Organization rules, and truly return to the community of rules-based, open, transparent, inclusive and nondiscriminatory multilateralism as soon as possible.

In its first report comprehensively revealing excessive violations of WTO rules by the US, China said that instead of taking the lead in complying with WTO rules and enhancing the authority and efficacy of the WTO, the US was doing just the contrary.

Experts said these moves showed how the US was damaging the cause of free trade, while China shows its determination to safeguard multilateralism.

"The multilateral trading system has encountered serious challenges, and important members should take the lead in promoting solidarity and cooperation among all parties to jointly safeguard its authority and effectiveness," said an official from the Ministry of Commerce.

"Regrettably, as the world's largest economy and major founder and principal beneficiary of the multilateral trading system, the US has been flouting WTO rules and the expectations of other members," the official said.

According to the report, since 2017, the US government has adopted a series of unilateralist and trade protectionist measures, and has pursued an "America First" approach. It has become a destroyer of the multilateral trading system, a unilateralist and a bullying hegemonist, a double-standard manipulator on industrial policies, and a disturber of global industrial and supply chains.

The US has adopted various protectionist practices, such as abusing the national security exception, imposing high tariffs and trade restrictions, providing massive subsidies to support domestic industry, instigating decoupling and fragmenting industrial and supply chains, and promoting "near-shoring" and "friend-shoring", which has seriously disrupted the security and stability of global industrial and supply chains, the report said.

"For the US, decoupling has not brought manufacturing back to the US as expected, but instead imposed additional tariff burdens on its companies and households. For the world, decoupling and fragmenting industrial and supply chains instigated by the US does not enhance the resilience of global industrial and supply chains, but makes them more vulnerable and even fragmented," it said.

"The post-World War II international order has been proved to be effective in safeguarding world peace and development, and the WTO has played an important role in addressing trade disputes and promoting growth," said Zhao Hong, a professor at Peking University's Law School and former chairperson of the WTO Appellate Body.

"The excessive violation of WTO rules by the US and its trampling on free trade has already severely damaged the normal global order, and harmed world peace and stability," she said.

Gao Lingyun, director of the international investment division at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, said US misconduct will only trigger a rat race and a beggar-thy-neighbor approach among WTO member economies and exacerbate trade frictions.

"The key to realizing long-term peace, stability and development for the US and the rest of the world is to build consensus and strengthen cooperation under the existing trading framework and global economic order," he said.

Li Haidong, a professor of US studies at China Foreign Affairs University, said the self-interest of the US, rather than the interests of the international community at large, is Washington's top concern.

The world is in urgent need of rules-based and win-win cooperation instead of barriers and walls, in order to foster synergy, promote sound development and tackle common challenges, Li said.