The World Trade Organisation ruled that China discriminates against foreign electronic payment providers, handing the US its latest victory in a trade dispute over market access in the Asian nation.
A panel of the global trade body said China was maintaining a monopoly for certain types – but not all – renminbi-denominated card transactions, in a manner that was inconsistent with WTO rules. China allows only one company – China Unionpay – to process domestic currency transactions and requires that all payment cards issued in the country bear its logo, shutting out foreign providers.
Although the US did not prevail in every argument it made before the WTO panel, the ruling was being treated as a win by the Obama administration, which is seizing every opportunity to tout its tough stance on trade enforcement with voters. “Today’s win highlights that tackling unfair Chinese trade practices has been a priority of this president” said Jay Carney, White House press secretary, as Mr Obama travelled to Cincinnati in the swing state of Ohio for his latest rally. “This is another judgment in the US’s favour,” Mr Carney said.