(Adds U.S. comment)
GENEVA, July 7 China failed to overturn a U.S.
law targeting unfair trade subsidies on Monday, when the World
Trade Organization's Appellate Body said it did not have enough
information to uphold China's appeal against an earlier WTO
China had claimed that the U.S. "Public Law 112-99," also
known as the GTX legislation, which was signed by President
Barack Obama in March 2012, broke world trade rules, but a WTO
dispute panel ruled against it in March.
The Appellate Body disagreed with several of the panel's
interpretations of the law but said it did not have enough
information to rule one way or the other, effectively leaving
the March ruling intact.
However, the Appellate Body also left intact another part of
the panel's ruling, which said that the United States had
wrongly "double counted" when punishing Chinese goods for being
both subsidised and unfairly priced - allowing both parties to
In a statement, China's Ministry of Commerce said the
dispute was "another significant victory of China's challenge
against the United States' abuse of trade remedy measures".
But the United States said the ruling showed it acted within
its rights when introducing the legislation.
"Today's decision allows U.S. industries to continue to rely
on U.S. trade laws to address unfair competition from their
subsidized Chinese competitors," Commerce Secretary Penny
The U.S. tariffs affected photovoltaic cells and modules
used in solar power, various steel products, off-road tires,
aluminum goods and towers for wind farms.
China said the annual value of trade affected was $7.2
It launched the complaint in September 2012, in an apparent
tit-for-tat move that came hours after the United States lodged
a complaint against China's support for car exports.
(Reporting by Tom Miles; Additional reporting by Krista Hughes
in Washington; Editing by Robert Evans and Jonathan Oatis)