A sign of the WTO on its headquarters in Geneva Photo: VCG

The Chinese delegation at the WTO initiated a special agenda item, criticizing the US for its misleading narrative and flawed logic in selectively focusing on the goods trade deficit when advocating so-called "reciprocal tariffs," while ignoring the substantial benefits it gains from trade in services, state broadcaster CCTV reported on Saturday.

China criticized the US for seeking to benefit unilaterally from economic globalization, yet resorting to unjustified suppression whenever other members also benefit. China called on the US to genuinely abide by World Trade Organization (WTO) rules, resolve differences through multilateral cooperation rather than unilateral actions, and work with all parties to uphold the stability of the global trading system.

The agenda item was proposed by the Chinese delegation at the second annual meeting of the WTO Council for Trade in Services in Geneva on Friday, and the Chairperson confirmed it had been added to the agenda.

China noted that the US is the world's largest services trade surplus holder, maintaining long-standing surpluses with its major trading partners, with a services trade surplus close to $300 billion in 2024. Furthermore, the US derives even greater benefits through deep participation in high value-added segments of the global value chain, such as research and development, design, and sales, reaping far more than what trade data suggests, CCTV reported.

Chinese representatives pointed out the US narrative focusing solely on goods trade "deficits" while ignoring services trade gains is one-sided and misleading. They emphasized that the US cannot selectively apply trade rules — embracing them when convenient and discarding them when not — and it must not pursue gains only for itself while denying them to other members, especially developing WTO members.

China noted that it had reached consensus with the US through equal consultation, easing tensions and setting a positive example for other WTO members, and called on all members to address concerns within the WTO framework, resolve disputes through multilateral cooperation rather than unilateral measures, and accelerate WTO reform to preserve an open, stable, and predictable multilateral trade system.

Developed WTO members such as the EU, Australia, and Canada, along with developing members such as Brazil and Pakistan, responded positively, emphasizing that services trade is critical to the future of global commerce. crisis response, and supply chain resilience. All parties called for maintaining a spirit of consultation and cooperation, exercising restraint in imposing trade restrictions, ensuring the stability and predictability of regulatory policies, and jointly promoting the healthy and stable development of global trade, CCTV reported.

According to the WTO's meeting report, China raised two concerns regarding US restrictions on trade in services. The first was the US "America First Investment Policy" issued in February 2025, which restricts Chinese investment in key sectors like semiconductors and AI while favoring certain Members. China argued this violates Most Favoured Nation principle of WTO' General Agreement on Trade in Services

(GATS) and GATS Article VI.1, citing misuse of national security to justify discrimination. It urged the US to withdraw WTO-inconsistent policies, respect market rules, and uphold a fair, rules-based global services trade system.

Second, China criticized the US final rule issued in December 2024 that restricts data flows to China and other "countries of concern," calling it discriminatory and a violation of the WTO's Most Favoured Nation principle. China argued the US offered no concrete security evidence and misused national security to justify protectionism. It urged the US to correct such practices and support fair, open global data flows and digital trade governance, the report said.

Global Times