The World Trade Organization (WTO) stated on July 17 that China’s financial support programs in key industries such as electric cars, aluminum, and steel lack transparency, leading to the WTO’s inability to fully understand the specific circumstances.
According to the WTO, China has provided financial support and other incentive measures to various industries between 2021 and 2024, but the Beijing authorities have not provided sufficient information to assist the WTO in obtaining a comprehensive understanding.
The WTO report pointed out that the support provided by the Chinese government lacks transparency, which could also lead to external perceptions of overcapacity in industries such as semiconductors and shipbuilding. Furthermore, while the Chinese government claims to use public resources for equity investments in key industries, the lack of notification to the WTO regarding these funds makes it impossible for the WTO to determine the scale of such investments.
The WTO’s assessment report is part of the review of China’s trade policy. Every few years, the WTO conducts reviews of the trade policies of its 166 member countries and invites other countries to respond to the review results. China’s last review was in 2021.
Against this backdrop, several Western countries including the United States, Australia, the United Kingdom, and the European Union have criticized China’s industrial policies.
In Washington, a strongly worded speech condemned Beijing’s “predatory” industrial practices that harm the interests of other countries, accusing the Chinese government of fully supporting this ruling goal.
David Bisbee, the Deputy Ambassador of the United States to the WTO, stated that China’s further implementation of a state-led non-market economic approach has harmed the United States and other countries, including workers and businesses in emerging and developing economies.
Aguiar Machado, the EU Ambassador to the WTO, suggested that China should refrain from using its status as a “developing” country in the WTO to gain preferential treatment for poorer countries, citing China’s continuous wealth growth.