WTO Defeat

China suffered its first defeat in the WTO today since its inception in 2001. Western countries routinely criticize China for its protectionist policies, especially China's requirement that Chinese cars must be comprised of 60% Chinese parts (or pay higher taxes). Today the WTO ordered China to halt this policy or lose its membership. U.S. officials expect future rulings on China's policies on foreign media and copyrighted U.S. goods. Will China honor its obligations? China has not yet provided a response.