US trade official accuses China of sector-wide industrial expansion at WTO review

A senior US trade official accused China of targeting entire industrial sectors for global dominance while retaining a non-market economic system, as Washington reviewed Beijing’s compliance with its World Trade Organization commitments. Terry McCartin, the Assistant US Trade Representative for China, Mongolia and Taiwan Affairs, said China’s anticompetitive conduct posed a major challenge to the global trading system. He said Beijing’s approach had developed beyond individual disputes towards coordinated industrial strategies.

The hearing formed part of an annual review required by the US Congress. The Office of the US Trade Representative uses public submissions and testimony to assess China’s fulfilment of its WTO obligations. Its latest report, issued in March 2026, said China’s state-led economic model had become more entrenched after almost 25 years of membership.

The report argued that industrial policies, state support and efforts to favour domestic companies created problems that existing WTO rules were not designed to address. It said Washington should therefore use measures outside the WTO to respond to what it called non-market practices. China’s embassy in Washington did not respond to a request for comment.

Seventeen organisations submitted written comments before the hearing, representing sectors including agriculture, technology, healthcare, consumer products and manufacturing. The American Iron and Steel Institute said subsidies and industrial policies had produced steel output well above domestic demand, with exports damaging US producers and workers. It called for further tariffs and coordinated action with other countries.

The Personal Care Products Council raised regulatory barriers affecting US cosmetics, including certification and product-update requirements. It estimated that resolving three issues could increase US exports by about US$282 million a year. A group representing eldercare equipment providers called for clearer and more predictable approval procedures in China.

US Trade Representative Jamieson Greer said countries participating in the Global Forum on Steel Excess Capacity had agreed to a framework for joint action. He said the United States would work with “like-minded partners” to address distortions linked to excess capacity. The review is taking place alongside ongoing trade talks between Washington and Beijing.