China’s Ministry of Commerce (MOFCOM) has released a comprehensive report criticizing the United States’ behavior and actions that undermine the global multilateral trade system. The report, issued on Friday, offers a detailed assessment of the US’ fulfillment of its obligations within the World Trade Organization (WTO) framework.
The MOFCOM report accuses Washington of “destroying the multilateral trade mechanism, exercising unilateralist bullying, manipulating double standards in industrial policy, and disrupting the global industrial and supply chain.” This marks the first time China has issued such a report about the US’ WTO obligations.
Experts view the report as an objective presentation of the US’ hegemonic behavior, which prioritizes its own interests and disrupts the world order. It highlights the detrimental consequences of the US’ approach, which has led to chaos and division in the global trade landscape.
The timing of the report holds significance as it precedes a reported visit to China by US Commerce Secretary Gina Raimondo in August. This move serves as a stern warning to the US and urges it to realign with the principles of the WTO-based global system, a step seen as crucial for repairing strained bilateral relations.
In contrast, the US has annually issued reports on China’s compliance with WTO rules, often criticized for being geopolitical tools containing baseless accusations against China.
The MOFCOM report calls on the US, as the world’s largest economy and a key beneficiary of the multilateral trading system, to honor its commitments and uphold the rules, thereby strengthening the role of the multilateral trading system in global governance.
The report raises several concerns regarding the US’ actions. It notes that the US has the highest number of dispute settlements initiated by other WTO members, yet it selectively implements WTO rulings and obstructs the appointment of Appellate Body members, effectively paralyzing the system.
The report also highlights the US’ frequent use of “national security,” “human rights,” and “forced technology transfer” as pretexts for unilateral measures against other WTO members. These measures include imposing tariffs and abusing trade remedies, positioning the US as a “perpetrator of unilateralist bullying.”
Furthermore, the report points out the US’ discriminatory subsidy policies and its manipulation of export controls to restrict the industrial development of other members, categorizing the US as a “manipulator of double standards in industrial policies.”
The report also addresses the US-driven push for decoupling, emphasizing how unilateral tariff measures aim to relocate industrial chains, establish US-centric chains, and disrupt global supply chains.
Experts within China applaud the report for its objective evaluation and well-documented evidence. They assert that the US is in no position to accuse others, given its own history of aggressive actions that have negatively impacted multiple countries.
China’s report underscores the country’s commitment to the multilateral trading system and serves as a counter to baseless accusations made by the US. It emphasizes that the US’ actions endanger the foundation of the WTO and urges Washington to rectify its behavior.
In contrast, China has actively supported the WTO since joining in 2001, promoting an open world economy and contributing positively to the global trade landscape.
This report arrives amid a series of high-level US officials’ visits to China, with Raimondo’s potential visit in August following visits by other top US officials since June. The report sends a clear message, especially as the US continues its unilateral sanctions against Chinese industries.