WTO Rules in Favor of China in US-China Trade Dispute...Strong US Opposition

First Ruling on Tariff Measures Imposed Under Trump Administration
Appellate Body Paralysis Makes Final Judgment Difficult
US States No Impact on US-China Trade Agreement
US Government Likely to Intensify WTO Pressure

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] On the 15th (local time), the World Trade Organization (WTO) ruled in favor of China in a dispute over tariffs imposed by the Donald Trump administration on China. Although it is uncertain whether the final ruling will stand as the WTO's Appellate Body, the organization's highest appellate body, is effectively paralyzed, the United States has already strongly opposed the decision.

According to the Associated Press, the WTO panel, which acts as the first instance, judged that the tariffs imposed by the U.S. on Chinese products worth approximately $234 billion (about 276.1 trillion KRW) do not comply with trade regulations.

The WTO also pointed out that the U.S. failed to demonstrate how the targeted Chinese imports are related to China's intellectual property theft and urged both countries to "make greater efforts to reach a mutually satisfactory solution."

Previously, the U.S. imposed additional tariffs on Chinese products in 2018 under Section 301 of its trade law, citing unfair government subsidies and intellectual property violations by China, to which China responded by filing a complaint with the WTO.

The U.S., which has been in conflict with the WTO under the Trump administration, immediately reacted. Robert Lighthizer, U.S. Trade Representative (USTR), stated in a press release that the ruling is entirely inappropriate and said, "The Trump administration will not allow China to use the WTO to exploit American workers, businesses, farmers, and ranchers."

However, Lighthizer emphasized, "It is important to note that this report does not affect the historic Phase One trade agreement between the U.S. and China," adding, "It will not impact the U.S.-China agreement, which includes new and enforceable commitments from China to stop technology theft."

The WTO has been reviewing this case for over a year since January last year and has now reached a conclusion. The Associated Press reported that this ruling is the WTO's first decision on a series of tariffs imposed by the Trump administration on products from other countries. The U.S. can appeal the ruling within 60 days if it disagrees, but since the WTO's Appellate Body, which serves as the final adjudicator, is currently non-functional due to U.S. neglect, it is uncertain whether the WTO's final judgment process can proceed.

Bloomberg also assessed, "Although China has secured a procedural victory, the ruling's significance is limited because the U.S. has already dismantled the appeals process, rendering the WTO crippled."

However, the conflict between the U.S. and the WTO is likely to escalate further. Recently, President Donald Trump has criticized Democratic presidential candidate Joe Biden, who supported China's accession to the WTO, claiming that China has expanded its influence since joining the WTO.

This content was produced with the assistance of AI translation services.