 "China accuses US of undermining WTO, says Trump’s trade policies ‘erode trust’ in global system")
China has accused the United States of systematically undermining the World Trade Organisation (WTO) and distorting global trade norms through a series of unilateral sanctions, reciprocal tariffs and discriminatory trade measures enacted under President Donald Trump’s new administration.
In a statement released on Friday, China’s mission to the WTO said Washington’s recent actions “violate its multilateral commitments and erode the credibility of the global trading system.”
The Chinese delegation added that Beijing’s upcoming commerce ministry report on US trade practices will assess America’s compliance across 11 areas, including tariffs, export controls and technology restrictions.
According to the Chinese mission, the report aims to “renew calls for the United States to abide by WTO rules and join other members in defending the stability and fairness of global economic governance.”
Washington’s new tariffs rekindle trade tensions
The accusations come amid a renewed surge in US–China trade tensions as the Trump administration pursues a tougher line on technology and rare earths—key materials used in electric vehicles, semiconductors and defence systems. China also said that Washington’s trade measures “erode trust” in the multilateral system as tensions escalate over rare earths and technology exports
Treasury Secretary Scott Bessent this week defended the administration’s new tariff measures, telling NBC News that they were necessary to “protect American workers and national security interests.” Bessent said the US “cannot allow strategic sectors like clean energy and AI to be dominated by a state-subsidised system that doesn’t play by the rules.”
The United States has also moved to expand sanctions against Chinese technology firms and tighten export restrictions on advanced chips and related equipment, citing national security concerns. In response, Beijing has accused Washington of weaponising trade policy and attempting to decouple the global economy under the guise of “economic security.”
Impact Shorts
More ShortsChina calls US approach ‘discriminatory and protectionist’
Chinese Vice Commerce Minister Li Chenggang said that the latest US tariffs and sanctions were “discriminatory and protectionist,” designed to “suppress China’s industrial development rather than promote fair competition.” He added that such unilateral actions “undermine the foundation of trust upon which the multilateral trading system was built.”
Li described the Trump administration’s approach as reminiscent of the “trade war logic” of 2018–2019 but “with sharper tools and broader targets.” Beijing, he said, would respond through “lawful means within the WTO framework” and by strengthening economic ties with partners in Asia, Africa and the Global South.
Rare earths and critical minerals in spotlight
One flashpoint in the latest escalation is rare earth minerals. As NBC News reported, the US has announced new tariffs on imports of Chinese rare earth magnets and signalled plans to reduce dependency on Chinese processing facilities.
In retaliation, China has hinted it may tighten export controls on key minerals such as gallium and graphite, critical for EV batteries and semiconductors. Analysts told CNN that such measures could disrupt global supply chains, given China’s dominance in refining and processing rare earths, which account for nearly 70% of global output.
“This is not just a trade dispute—it’s a contest for technological leadership and economic leverage,” said a Beijing-based trade researcher quoted by Al Jazeera. “The WTO is being sidelined and that’s a dangerous precedent for global governance.”
WTO under pressure as great-power rivalry deepens
The latest standoff adds pressure on the WTO, already struggling to remain relevant in a world increasingly defined by unilateralism and economic nationalism. Trade experts note that both Washington and Beijing have used “national security exemptions” to justify measures that critics say flout WTO rules.
“The US is invoking security arguments too broadly,” said a Geneva-based diplomat quoted by Reuters. “If every country follows this path, the WTO’s rule-based system could collapse.”
Trump administration officials, however, insist that current policies are compatible with WTO obligations. “We’re not undermining the WTO—we’re saving it from irrelevance,” Bessent told NBC News, arguing that the WTO “must adapt to the realities of state-capitalist models like China’s.”
A global call for balance
As the world’s two largest economies escalate their trade confrontation, other nations are increasingly caught in the middle. Many developing countries particularly in Africa and Southeast Asia, fear that the fragmentation of the global trading system could derail growth and investment flows.
“Globalisation was built on predictability,” said a senior ASEAN official quoted by Reuters. “What we’re seeing now is fragmentation and uncertainty driven by the very countries that created the system.”
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