A case involving restrictions on the important of foreign-made car parts marks China’s first defeat in the World Trade Organization. From the BBC:

Upholding a complaint from the European Union, Canada and US, the preliminary WTO finding agrees that current Chinese practice is protectionist.

Under existing Chinese rules, its carmakers must use 60% Chinese-made parts – or pay higher taxes.

The ruling says China must end this policy to meet its WTO obligations.