China says WTO faces "deep crisis" and calls for reform

BEIJING (Reuters) – China on Friday urged the World Trade Organization (WTO) to fill the gaps and correct the practices of some member states that undermine global trade, warning against a "deep crisis" "for his institution.

China and the United States have been arguing over how the WTO should reform to better serve the interests of its members, in the context of a growing trade dispute that has resulted in billions of dollars in retaliation and shook world markets.

The G20 members are expected to discuss WTO reform at a summit in Argentina next week, following an unsuccessful attempt to reach an agreement on the subject when it is due to take place. an APEC forum held last week in Papua New Guinea.

The debate over WTO reform was largely motivated by complaints by the United States that it failed to control alleged violations of Chinese rules, with US President Donald Trump threatening to withdraw to protect American interests.

The United States wants the WTO to crack down on Chinese subsidies to state-owned enterprises, the overcapacity of the steel industry and other basic industries, and the practice of forcing investors to put back valuable technologies.

At a press conference held on Friday, Chinese Vice Minister of Commerce Wang Shouwen unveiled a list of detailed requests and principles explaining China's position that the reform should respect the core values ​​of the WTO , ensure equity and protect the interests of developing countries.

He attacked what he called "excessive" subsidies to agriculture, which only developed countries benefit from, claiming that some Member States had exploited the loopholes in the system. ; WTO.

The reforms should correct the discrimination of some countries vis-à-vis the investments of other countries and companies, and not be used to deprive China of the right to differential treatment as a developing country, said Wang, without naming any country.

"Some countries actually hope to maintain their monopoly status and restrict the development of other member states," he said.

Referring to state-owned enterprises, he said China objected to an unfounded criticism of "normal corporate and business subsidies" and "normal sharing of technological innovations".

Mr. Wang added that the WTO should try to break the stalemate in the Appellate Body appointments, which have been blocked by the United States, which blame the judges Dispute Settlement Body has hindered a campaign by the United States against unfair trade practices.

China's ambassador to the WTO, Zhang Xiangchen, said this week that China would not have to oppose views, so he warned his fellow WTO members against the reform as a chance to put China in a straitjacket.

"The WTO should prioritize the main issues that threaten its existence," Wang said.