China is withdrawing from free trade commitments
China is withdrawing from free trade commitments

China is withdrawing from free trade commitments

The United States has accused China of failing to meet its obligations to the World Trade Organization.

The United States says it will explore new ways to combat aggressive Chinese trade practices. In its annual report on China’s compliance with WTO rules on Wednesday, the Office of the US Trade Representative said that China was not keeping its promises to open its markets to foreign competition when it joined the 164-country Geneva-based agency in 2001.

Among other things, the United States reiterated long-standing allegations that China uses subsidies and regulations to favor its own companies at the expense of foreign competitors.

U.S. Trade Representative Katherine Tai said, “China has instead maintained and expanded its state-led, non-market approach to economics and trade.” Tai said, “China’s policies and practices challenge the premise of WTO rules and cause serious harm to workers and businesses around the world.”

In the report, the United States said: “China’s leadership appears to have confidence in its state-led, non-market approach to economics and trade and feels no need to adhere to global standards.”

The United States and China reached what was called a Phase 1 trade agreement in January 2020. In it, China agreed to increase purchases of U.S. agricultural exports. However, according to a report from the Peterson Institute of International Trade, China is said to have bought only 57% of the US exports it has committed to buying, It reported the Associated Press.


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