China has formally escalated its trade dispute with the United States by filing a lawsuit through the World Trade Organization's (WTO) dispute settlement mechanism, the Ministry of Commerce announced Friday. The move comes in response to recent U.S. tariff increases targeting Chinese-made electric vehicles, solar panels, and lithium-ion batteries, signaling renewed frictions between the world's two largest economies.
The legal challenge addresses what Chinese officials describe as “discriminatory trade practices” violating international trade rules. Analysts note this marks Beijing's sixth WTO complaint against Washington since 2018, reflecting persistent structural disagreements over market access and industrial policy.
“Resorting to unilateral protectionist measures disrupts global supply chains and weakens multilateral trading systems,” stated a ministry spokesperson during Friday's briefing. The announcement coincided with fresh U.S. tariffs impacting $18 billion in Chinese imports, part of Washington's strategy to counter what it calls “unfair trade practices.”
Financial markets showed muted reactions to the development, though observers warn prolonged disputes could affect sectors from advanced manufacturing to consumer electronics. The International Monetary Fund recently cautioned against fragmentation in global trade governance amid growing geopolitical tensions.
Next steps under WTO rules require formal consultations within 60 days. Should talks fail, China could request a dispute settlement panel to adjudicate the case—a process often spanning several years.
