TL/DR –
A World Trade Organisation (WTO) panel ruled in favor of China in a dispute over the US Inflation Reduction Act, reflecting a basic consensus among WTO members. The US acknowledged that it lost the case but criticized the ruling, claiming that existing WTO rules cannot address the issue of “overcapacity.” China’s Ministry of Commerce spokesperson urged the US to respect the ruling and comply with WTO rules.
China Urges the US to Respect WTO Panel’s Ruling on Inflation Reduction Act
BEIJING: In a recent development, China’s Ministry of Commerce commented on the ruling of a World Trade Organisation (WTO) panel on a dispute concerning the US Inflation Reduction Act, stating that it demonstrates a fundamental agreement among WTO’s members.
The aforementioned statement was made on Thursday, in response to the US Trade Representative’s office’s comments on the ruling.
He Yadong, the spokesperson for the Ministry of Commerce, addressed the matter during a routine press briefing. He was responding to the US side’s acknowledgment of its loss in the case, even though it contested the correctness of the ruling.
The US argued that the current WTO rules are inadequate in tackling the issue of “overcapacity.” China has acknowledged the US’s remarks on this matter.
He Yadong emphasized that the ruling by the WTO panel was fair and unbiased in this particular case. He further stressed the importance of the US, being a WTO member, respecting the decision and complying with the rules set out by the organisation. The spokesperson underscored the need for all member nations to abide by the international body’s rulings.
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