717273 Though USTR claims that 23 WTO cases have been brought against China so

717273 though ustr claims that 23 wto cases have been

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71,72,73 Though USTR claims that 23 WTO cases have been brought against China, so far Trump’s USTR has initiated only one case against China and continues to litigate a few more started under the Obama administration. A former American WTO Appellate Body member has made the case that a range of Chinese practices of particular concern to the U.S., such as access to trade secret, forced technology transfer, lack of IP enforcement, and Chinese subsidies to SOEs could be litigated at the WTO. 74 There are further areas where the U.S. and allies should seek to work within the WTO. This is not to underestimate the challenges of making progress in the WTO given the diverse membership and institutional challenges. The U.S. and China would need to have the political will to make progress on some of their bilateral issues in the WTO context. Taking a more multilateral approach to some of the bilateral trade issues could also give President Xi political cover to make commitments which he would not be able to undertake unilaterally. In terms of what the U.S. could seek to pursue at the WTO, first, the U.S. should work with China to agree to an in-depth review at the WTO of China’s compliance with its WTO accession agreement. Second, the U.S. should work through the WTO to ensure that China actually gives a full accounting of its SOE activities and subsidies as required of any WTO member and pursuant to its Protocol of Accession. Third, the U.S. should work with allies and China to reintroduce the China specific safeguard 75 as well as craft an agreement with China regarding the ongoing use of NME methodology until such time that China is able to substantiate that it has become a market economy. 76 Progress on the NME issue could be the result of a negotiated settlement of the WTO case that China has brought against the EU and U.S. regarding their continued use of NME methodology in trade remedy cases. 77 Fourth, working to reform the WTO dispute settlement system to ensure quicker dispute settlement proceedings, including potential injunctive relief for unfair trade practices, would be an institutional change that would be useful vis-à-vis China. 78 Fifth, the U.S. should use a bilateral deal with China or a BIT as the basis for re-energizing the negotiation of new rules at the WTO on areas such as technology transfer, SOEs, and digital trade. 70 United States Trade Representative. 2018 Report to Congress on China’s WTO Compliance. 71 Reich, Arie. “The effectiveness of the WTO dispute settlement system: A statistical analysis.” EUI Department of Law Research Paper, 2017/11 (2017): 20. 72 Wu. 73 Bacchus, James, Simon Lester and Huan Zhu. “Disciplining China’s Trade Practices at the WTO: How WTO Complaints Can Help Make China More Market-Orientated.” CATO Policy Analysis , No. 856 (November 15, 2018).
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