BEIJING, Feb. 1 (Xinhua) -- The World Trade Organization (WTO) ruling against U.S. subsidy measures is a reinforcement of the principle that no country should be above international rules, and that unilateral trade practices are bound to face justified consequences under the multilateral system.
A WTO panel, which backed a complaint by China, ruled on Friday that the United States' clean energy subsidy measures are inconsistent with WTO rules, and required the U.S. side to withdraw the subsidies in question under the Inflation Reduction Act (IRA).
The ruling is a victory for China in safeguarding its legitimate trade interests, and is expected to impact the future trade practices among major economies.
The IRA contains discriminatory clauses that only provide subsidies for clean energy projects that use domestic steel and iron, and other products.
This is classic protectionism, turning a blind eye to the trend of globalization and slamming on the reverse gear of economic development. It also exposes the United States' attempt to prioritize its own interests over international rules.
The U.S. is a founder and beneficiary of the multilateral trading system, but has gradually become its biggest saboteur. It has frequently resorted to unilateral trade measures, weaponized tariffs and abused subsidy policies to protect its domestic industries, while ignoring its obligations as a WTO member.
In the IRA case, the U.S. attempted to evade its responsibilities by citing reasons such as protecting U.S. public morals, which was rightfully rejected by the WTO panel after a thorough investigation. This fully demonstrates that unilateralism, which runs counter to the shared interests of the international community, cannot escape the constraints of international rules.
The WTO's ruling is of significance to safeguarding the global trade order. It highlights that the multilateral trading mechanism still has vitality and credibility, and sends a signal to the world that any attempt to use power to override international rules will ultimately fail.
At a time when the global economy faces uncertainties and the multilateral trading system encounters unprecedented challenges, this ruling underlines the much-needed role of multilateralism in reducing disruptions to the stability of global industrial and supply chains.
The U.S. has repeatedly obstructed the operations of the WTO dispute settlement system, such as blocking new appointments to its Appellate Body. Ignoring the rules and evading its responsibilities will only damage its own credibility and interests. The U.S. should face up to the ruling and earnestly correct its erroneous practices.
As a responsible major country, China has always been a firm defender of WTO rules, and a steadfast upholder of the international economic and trade order. China's decision to resort to the WTO dispute settlement mechanism reflects its adherence to the rule of law and its commitment to multilateralism.
It is hoped that all countries will work together to uphold the authority of the multilateral trading system, resist unilateralism and trade protectionism, and promote the stable and healthy development of global trade. ■
