Key facts
- China's WTO compliance record is poor due to violations of WTO rules, according to the USTR.
- The USTR cited China's state-led, non-market approach to economy and trade as a key violation.
- China's practices are described as 'predatory' and designed to displace foreign competitors.
- The USTR recommends enhanced domestic investment, bilateral engagement, new trade tools, and working with allies.
- The USTR's findings align with the Trump administration's America First Trade Policy.
In January 2025, the U.S. Trade Representative (USTR) published its 2024 Report to Congress on China’s WTO Compliance, concluding that China has a poor record of adhering to World Trade Organization rules. The report highlighted China's "embrace of a state-led, non-market approach to the economy and trade," which the USTR stated has intensified over the past decade and is "predatory in nature." According to the USTR, these practices are designed to "aggressively displace foreign competitors" and "secure the dominance of Chinese enterprises in targeted industries," causing harm to companies and workers in other WTO member countries.
The USTR noted that addressing these practices has been challenging due to the U.S.'s reliance on China for critical commodities. The agency indicated that current tools have been insufficient to deter China's behavior, and complete decoupling would harm U.S. economic and national security interests. Instead, the USTR recommends a multi-faceted strategy for the U.S. to de-risk and diversify. This strategy includes increasing domestic investment in key industries, engaging bilaterally on China's implementation of the Phase 1 trade agreement, developing new domestic trade tools, and collaborating with allies to address global trading system issues.