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US, EU, Japan slam unfair trade practices in veiled swipe at China

Three said in statement at the World Trade Organisation they would work to stamp out abuses including state subsidies and forced technology transfers

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US Trade Representative Robert Lighthizer (left), Japan's economy, trade and industry minister Hiroshige Seko (centre) and European Commissioner for Trade, Cecilia Malmstrom pose for a photograph during the WTO ministerial conference in Buenos Aires. Photo: Reuters

The United States, the European Union and Japan vowed on Tuesday to work together to fight market-distorting trade practices and policies that have fuelled excess production capacity, naming several key features of China’s economic system.

In a joint statement that did not single out China or any other country, the three economic powers said they would work within the World Trade Organisation and other groups to eliminate unfair competitive conditions caused by subsidies, state-owned enterprises, “forced” technology transfer and local content requirements.

The move was a rare show of solidarity with the United States at a World Trade Organisation meeting dominated by differences over US President Donald Trump’s “America First” trade agenda and US efforts to stall the appointment of WTO judges.

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It reflected growing frustration among industrial countries over China’s trade practices, along with concerns that other developing countries will follow Beijing’s lead.

The statement said protectionist practices “are serious concerns for the proper functioning of international trade, the creation of innovative technologies and the sustainable growth of the global economy”.

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