US criticises China’s WTO compliance as industry groups mount complaints

A senior US trade official criticized China's adherence to its World Trade Organization (WTO) commitments during a recent hearing, stating that Beijing was targeting entire industrial sectors for global dominance while maintaining a non-market economic system. Terry McCartin, the Assistant US Trade Representative (USTR) for China, Mongolia, and Taiwan Affairs, emphasized that after 25 years of WTO membership, China still holds a non-market economic system, posing a major challenge to the global trading system.

The USTR's latest report, released in March 2026, argued that China's industrial policies, state support, and efforts to promote domestic industries continue to create challenges that existing WTO rules are not designed to address. This criticism comes as US steelmakers urge Washington to consider additional tariffs and coordinate with other countries to counter China's steel overcapacity.

Industry groups, including the American Iron and Steel Institute (AISI), the Personal Care Products Council, the American Association for Elder Care, and several others, have submitted comments outlining their concerns about Beijing's trade practices ahead of the hearing. The US has long accused China of failing to meet its WTO commitments, with the USTR reporting a deepening of China's state-led economic model rather than its softening.

Despite China's rejection of these allegations, the US remains committed to addressing the issues through various tools and international cooperation.