The World Trade Organization (WTO) has criticized China's industrial support programs for lacking transparency and not being consistent with its obligations under WTO rules [c9b22035]. The WTO report highlights that China's support programs have led to overcapacity in several sectors, including steel and aluminum. This lack of transparency has been a long-standing concern for many countries and has contributed to increasing tensions between China and other major economies over trade issues [c9b22035].
The report also mentions China's limited progress in joining the WTO's agreement on government procurement and its largely unchanged tariff structures since 2021. It raises concerns about the involvement of the Communist Party in private businesses, protecting foreign investors against forced technology transfers, and the consistency of Chinese retaliatory trade measures with WTO agreements. Additionally, the report emphasizes the need for China to provide a clear overall picture of the amount of subsidies given to its firms, particularly in sectors such as aluminum, electric vehicles, glass, shipbuilding, semiconductors, and steel. The report estimates that these subsidies could exceed $900 billion [dfab39a1] [c9b22035].
In response to the report, China has emphasized its efforts to deepen the reform of state-owned enterprises and its plans to join multilateral deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement [dfab39a1].