Pair of WTO Actions on China

The U.S. has suspended a dispute panel established to rule on the U.S. challenge of China's intellectual property (IP) practices until December 31. The IP issue is at the heart of a trade dispute between the two countries that began following a Section 301 investigation by the Office of the U.S. Trade Representative (USTR) which took issue with Chinese practices including forced technology transfer and IP theft.

Following the investigation the U.S. imposed new tariffs on imports of certain Chinese goods and initiated dispute proceedings at WTO in March 2018. The dispute panel was established Nov. 21, 2018. The US gave no reason was given for the suspension.

Meanwhile, the WTO announced that it has suspended the dispute over China’s economic status based on a request from China.

China had brought the challenge at the WTO against the European Union (EU) stance that China was not a market economy. China is said to have lost the case at the WTO, but the final ruling has not yet been made public.

Some speculate the action by China could be a bid by the country to avoid the release of the decision.