USTR criticizes WTO appellate ruling that hands victory to China

The U.S. government on Tuesday sharply criticized a World Trade Organization appellate ruling that paves the way for Chinese sanctions against the United States, arguing it ignored objective evidence and findings of the World Bank and others.

The WTO's appeals judges ruled on Tuesday that the United States did not fully comply with a WTO ruling on a challenge brought by China in 2012, and could face Chinese sanctions if it does not remove certain tariffs that break WTO rules.

"The WTO appellate report undermines WTO rules, making them less effective to counteract Chinese SOE subsidies that are harming U.S. workers and businesses and distorting markets worldwide," the U.S. Trade Representative's office said in a statement after the ruling.