MOFCOM Calls WTO Ruling on US Inflation Reduction Act Objective

China's Ministry of Commerce has affirmed that the recent ruling by the World Trade Organization regarding the United States' Inflation Reduction Act is both objective and impartial. A spokesperson for the ministry emphasized that the ruling encapsulates the fundamental consensus among WTO member nations, while also critiquing the US for attempting to rationalize its treaty violations and for jeopardizing the stability of global industrial and supply chains.

He Yadong, the ministry spokesperson, made these remarks in response to inquiries following the US Office of the Trade Representative's acknowledgment of losing the WTO case initiated by China. The US office subsequently characterized the ruling as flawed, claiming it illustrates the inadequacy of existing WTO regulations to address the overcapacity issue.

In light of the US’s statements, the spokesperson underscored that the WTO dispute settlement panel has provided an objective ruling that reflects the consensus among WTO members. Furthermore, he stressed that the United States, as a member of the WTO, has an obligation to respect such rulings and adhere to established international trade rules.

He Yadong reiterated that existing WTO regulations were the result of collaborative negotiations, with the US being a key participant during the Uruguay Round. Therefore, as both a negotiating party and a signatory, the US is contractually bound to uphold its international treaty commitments.

The spokesperson further elaborated on US actions, suggesting they serve to justify breaches of treaty obligations while shifting blame for domestic challenges onto external factors. He stated that such maneuvers disrupt global markets and threaten the stability of international supply chains.

He Yadong pointed out that the current international trade landscape is profoundly affected by unilateralism and protectionist policies, leading to significant disruptions. He called for all WTO members to work together to maintain a multilateral trading system, highlighting the collective responsibility in this regard.

Furthermore, the spokesperson urged the US to sincerely acknowledge WTO rulings and swiftly rectify actions that violate WTO guidelines. He advocates for the US to support a rules-based multilateral trading order through meaningful measures.

Against the backdrop of increasing uncertainty and challenges, China's position remains steadfast in favor of open and mutually beneficial cooperation within its economic and trade engagements. The spokesperson reaffirmed China's commitment to serving as a stabilizing force in an unstable world.

He added that China will consistently strive to inject greater stability and certainty into the global economy while fostering international economic and trade cooperation for steady and sustained progress.

The WTO panel had previously ruled in favor of China, declaring that the United States' clean energy subsidy measures violated WTO regulations and mandated the US to withdraw these subsidies as prescribed in the Inflation Reduction Act.

This ruling reinforces the principle that no country is above international rules and underscores that unilateral trade practices will encounter justified repercussions within the multilateral system, as noted in Xinhua commentary.

Overall, the situation underlines the importance of collaborative adherence to international trade rules in ensuring fair and stable global economic interactions.