There was never a "rules based" international order respected by all nations.. What happened was that prior US administrations played by the rules while the rest of the world took advantage of the naivete/inaction of the USA by ignoring the rules or gaming the system to take advantage of the American taxpayer.
Do you want examples? Let's just take a look at China and what it has been doing over the years while showing the finger to previous US administrations. :
### Major Instances of China's WTO Non-Compliance Without Significant Repercussions
While China has complied with many specific WTO dispute rulings (often after delays or appeals), numerous sources highlight systemic practices that violate the spirit or letter of WTO rules but evade full enforcement due to gaps in WTO mechanisms, lack of transparency, fear of retaliation, or the dysfunctional Appellate Body (which allows appeals to go unresolved). These have enabled China to benefit from WTO membership while imposing costs on trading partners, often without meaningful consequences. Below is a list of key areas and examples, drawn from reports and analyses:
- **Unreported or Opaque Subsidies Leading to Overcapacity**: China provides massive, non-transparent subsidies to industries like steel, aluminum, solar panels, and fisheries, distorting global markets and creating excess capacity. These are structured to skirt WTO notification requirements or direct challenges, resulting in harm to foreign competitors without comprehensive WTO resolution. For instance, subsidies under plans like "Made in China 2025" have gone largely unchallenged systemically, allowing dominance in targeted sectors.
- **Intellectual Property Theft and Inadequate Protection**: China engages in widespread state-sponsored IP theft, including trade secrets and confidential business information, often through cyber means or administrative pressures. While some cases reach the WTO (e.g., DS611 on IP enforcement), many instances are not attributable to the government under WTO rules, leading to no formal disputes or enforcement. This has cost U.S. industries billions annually without proportional repercussions.
- **Forced Technology Transfer Practices**: Foreign companies are often coerced into transferring technology via joint ventures or informal "administrative guidance" rather than explicit laws, making attribution to the state difficult under WTO rules. This evades direct litigation, allowing China to acquire foreign tech without facing WTO penalties, despite violating market access and non-discrimination principles.
- **Export Restrictions on Raw Materials and Rare Earths**: China imposed export quotas and duties on critical materials like rare earths (over 90% of global supply), inflating global prices and benefiting domestic firms. Even after losing WTO cases (e.g., in 2012 and 2014), initial delays and partial reforms allowed continued distortions; similar restrictions persist in other areas without full removal or punishment.
- **Lack of Transparency in Trade Regulations**: China routinely fails to publish new laws in WTO languages (English, French, Spanish) before enforcement, punishing foreign entities for non-compliance without notice. This opacity frustrates oversight and has not led to broad WTO enforcement, enabling ongoing violations.
- **Retaliatory Tariffs and Unresolved Disputes Due to Appellate Body Dysfunction**: In cases like retaliatory tariffs on U.S. goods (e.g., in response to steel/aluminum duties), rulings against China are appealed into a "void" because the WTO Appellate Body lacks quorum, preventing enforcement. This allows tariffs to remain indefinitely without consequences.
- **Currency Manipulation (Historical)**: Post-accession, China undervalued its currency by up to 30% for years, making exports cheaper and violating fair trade principles. This went largely unpunished due to limited WTO tools for currency issues.
- **Barriers to Market Access in Services and Finance**: Commitments to open sectors like payments (e.g., China Union Pay monopoly) and banking were delayed; foreign firms like Mastercard waited years for approval despite rulings. Fear of Chinese retaliation deters companies from pushing disputes, allowing de facto non-compliance.
These practices reflect a broader "paper compliance" pattern: China often adjusts specific measures after losses but maintains underlying non-market behaviors, exploiting WTO gaps. Sources note that while disputes have addressed some issues, systemic problems persist without repercussions, harming global trade.
