After 20 years of membership in the World Trade Organization (WTO), China has failed to adopt the rules of the institution and has even “amplified” its state focus on the economy, causing damage to companies and workers around the world. , lamented this Wednesday the Biden administration.
“China also has a long history of violating, ignoring and circumventing WTO rules to achieve its industrial policy goals,” he added.
Tariffs in sight
A sweeping Chinese competition bill, passed by the US House of Representatives and being considered in the Senate, would expand the use of tariffs to target cross-border subsidies for Chinese companies investing in production in the United States. abroad to avoid US taxes.
“It’s also clear that existing trade tools need to be strengthened and new ones forged. China engages in unfair policies and practices that weren’t contemplated when many of America’s trade statutes were written decades ago, so we’re exploring ways to update our business tools to counter them.
China does not comply
The USTR said in its annual report on China’s compliance with World Trade Organization rules that the “Phase 1” trade deal signed by the Trump administration two years ago failed to address fundamental US policy concerns. China’s industrial and supporting policies, including “massive financial resources”.
He added that such support, which includes favorable regulatory backing for Chinese industry and limited market access for imported goods and services, is often targeted at specific capacity, production and market share targets.
