The World Trade Organization confirmed on Friday it had ruled against China over its import tariffs for car parts, in the first WTO ruling against China since it joined the global trade body in 2001.
A WTO dispute panel said China should be asked to bring its import system into line with international trade rules.
The case involved three challenges brought by the United States, European Union and Canada.
In February, U.S. and Canadian officials said they had won a preliminary ruling in the case. Preliminary rulings are circulated only to the parties in a case, but WTO dispute panels rarely change their opinion between that and the final verdict.
The case could affect Chinese auto component makers such as Weichai Power or Changchun FAW-Sihuan.
U.S. component makers Delphi Corp. and Visteon Corp. already make products locally, and so would not benefit from any changes in Chinese car part tariff rules.
But their presence in effect keeps many rivals out of the world's second biggest auto market.
China's WTO commitments require it to set a much lower tariff on imported auto parts than on finished vehicles, but China has been applying the same tariff on parts as it does on vehicles unless the parts meet local-content requirements.
China now has an opportunity to appeal the ruling.
