The UK’s representative to the World Trade Organization (WTO) delivered a crucial statement at China’s Trade Policy Review in July 2024.
Simon Manley, the UK’s Permanent Representative to the WTO and UN, addressed key issues and concerns regarding China’s trade policies and their global impact.
UK’s Statement at the WTO
The statement began by acknowledging the efforts of Vice Minister Li Fei and the Chinese delegation, as well as the WTO Secretariat for their comprehensive report.
Manley emphasized the significance of reviewing China’s trade policies, which account for more than one-tenth of global trade.
He highlighted the increasing strains on the global trading system since the last review in 2021, citing new stresses on supply chains, global inflation, and national security concerns.
Main Issues Raised
Transparency and Fairness: Manley underscored the importance of transparency in China’s trade practices. He called for actions to tackle unfair discrimination and address bilateral trade imbalances caused by a lack of reciprocal market access. These issues, previously raised three years ago, remain pertinent today.
China’s Leadership: The UK recognized China’s positive contributions at the WTO, such as supporting dispute settlement reform and promoting the Investment Facilitation for Development Initiative. Manley also praised China’s efforts to increase women’s economic participation in trade, particularly in science, technology, and financial services.
Industrial Policy and Subsidies: Manley urged China to demonstrate leadership in discussions on industrial policy and subsidies. He emphasized the need for cooperation on global issues while acknowledging areas of competition and challenge.
Domestic Market Reforms: The UK welcomed China’s promised improvements to the foreign investment environment and recent updates to data regulations. However, Manley stressed the necessity for China to consult with foreign businesses to ensure these improvements meet their needs. He highlighted concerns about ambiguous regulations and arbitrary administrative approvals.
Market Access and Business Confidence
Manley called for China to improve market access for foreign investors and importers to restore business confidence. He emphasized the need for a level playing field, with regulations enforced transparently and fairly.
The UK’s concerns included the publication of laws with little notice, long delays in administrative approvals, and unclear enforcement of commitments to open market access.
State Owned Enterprises (SOEs)
The UK’s representative addressed the influence of China’s State Owned Enterprises (SOEs) on global trade.
With SOEs contributing significantly to global GDP, Manley stressed the importance of China implementing its Accession Protocol commitment to ensure SOEs operate independently without government influence.
He called for greater transparency and fair competition, noting that foreign businesses often face difficulties accessing procurement opportunities in sectors dominated by SOEs.
UK Call for Reforms
Manley urged China to undertake further reforms to demonstrate its commitment to transparency and fair trade. He called for the regulation of subsidies, disincentivizing overinvestment, and avoiding oversupply in international markets.
As Chair of the Global Forum on Steel Excess Capacity, he urged China to rejoin international efforts to eliminate market-distorting subsidies supporting excess steel capacity.
National Security and Trade Reciprocity
While recognizing the right of all WTO members to protect national security, Manley cautioned against the abuse of such measures for arbitrary discrimination.
He expressed concerns about China’s restrictions on critical mineral exports and the broad national security exemptions in domestic legislation.
Such measures, he argued, undermine the predictability of the trading environment, which businesses need for effective operations.
Commitment to Multilateralism
Manley concluded by reaffirming the UK’s belief in the indispensability of the WTO. He emphasized the need for all members to adhere to a rules-based trading system for collective benefit.
The UK’s engagement in China’s Trade Policy Review aimed to support global trade by encouraging China to consider how its domestic policies might impact other economies.
The UK remains committed to working constructively with China to restore predictability and confidence in the multilateral trading system.
Quick View of Recommendations
Concern |
UK Recommendations |
|---|---|
| Transparency in trade practices | Enhance transparency, tackle unfair practices |
| Bilateral trade imbalances | Address imbalances, ensure reciprocal access |
| Influence of State Owned Enterprises | Ensure SOEs operate independently, fairly |
| Ambiguous regulations | Clarify regulations, consult foreign businesses |
| Market access delays | Reduce approval delays, improve business confidence |
| Subsidies and overinvestment | Regulate subsidies, prevent market oversupply |
| National security measures | Avoid arbitrary discrimination, ensure transparency |
