Icon: enlarge
Photo: Jason Lee / REUTERS
According to the World Trade Organization (WTO), the punitive tariffs imposed on China by the USA violate the rules of the General Agreement on Tariffs and Trade (GATT).
This applies to the punitive tariffs imposed on Chinese goods in the amount of 200 billion dollars in 2019, said the WTO dispute settlement body.
The US did not adequately explain the need to protect its market against unfair competition through tariffs.
Washington had accused China that Chinese goods benefited from government funding and the theft of know-how.
The panel pointed out that there were no legal consequences beyond the finding.
Rather, the parties to the dispute would be encouraged to resolve their conflict bilaterally.
Both sides can now object to the assessment before a WTO appellate body.
However, this has no longer had a quorum since December because the USA blocked the appointment of judges.
The US government criticized the conclusions of the WTO body.
The report confirms the White House's position that the World Trade Organization is unable to stop China's harmful practices, said trade representative Robert Lighthizer.
The US should have the right to defend itself.
The two largest economies in the world have been engaged in a bitter trade conflict since 2018, in which they covered each other with massive punitive tariffs.
In mid-January, both sides finally signed a partial agreement.
In it, Beijing pledged to import more US goods and respect intellectual property.
In return, the USA waived new punitive tariffs and reduced some of the existing tariffs.
Icon: The mirror
hej / dpa / AFP