World Trade Organisation (WTO)

China blasted as ‘threat’ to international economy by US as trade fight unfolds in front of WTO in Geneva 

China responds with a call to WTO members to ‘take actions against the unilateralism and protectionism’ of the US

PUBLISHED : Saturday, 28 April, 2018, 3:00am
UPDATED : Wednesday, 01 August, 2018, 4:04pm

Just a month after US President Donald Trump upended the global order with threats of tariffs against allies and adversaries alike, his ambassador to the World Trade Organisation took aim at both China – a main focus of Washington’s ire – and the global trade body itself.

China’s “trade-distorting policies” represent a “threat to the international trading system,” Deputy US Trade Representative Dennis Shea said in Geneva, Switzerland, on Friday during his first public comments on the matter. 

US trade representative keeps pressure on China

China’s technology transfer policies harm every WTO member and industry that “relies on technology for maintaining competitiveness in world markets”, Shea said.

Trump has proposed tariffs on up to US$150 billion in Chinese imports as punishment for what his administration sees as widespread violations of US intellectual property rights. 

Beijing has vowed to retaliate in kind, with levies on everything from American soybeans to air planes. Treasury Secretary Steve Mnuchin, US Trade Representative Robert Lighthizer and National Economic Council Director Larry Kudlow will travel to Beijing next week for trade talks with top Chinese officials.

It’s a “very delicate” moment in relations, and the conflict has the potential to curb economic growth and weaken the WTO’s role as a global trade arbiter, according to WTO Director-General Roberto Azevedo. 

“Progress could be quickly undermined if governments resort to restrictive trade policies, especially in a tit-for-tat process that could lead to an unmanageable escalation,” Azevedo told reporters this month.

Yu Benlin, China’s deputy permanent representative to the WTO, said on Friday that Washington’s tariffs are unilateral and don’t comply with WTO rules.

The US actions are “challenging the foundation of the rules-based multilateral trading system”, Yu said, according to a copy of his prepared remarks. 

“We believe the time has come for all members to join with each other to take actions against the unilateralism and protectionism manifested in the US conduct.”

Shea dissented, saying the US measures are legal and they aim to counter China’s “harmful trade-distorting policies”, according to a copy of his remarks. 

“Instead of addressing its damaging and discriminatory policies, China accuses the United States of ‘unilateralism’,” Shea said. “This criticism has absolutely no validity.”

“If the WTO is seen as a shield protecting those members that choose to adopt policies that can be shown to undermine the fairness and balance of the international trading system, then the WTO and the international trading system will lose all credibility and support among our citizens,” he added.