The EU in particular alleges that a number of China's legal and regulatory instruments unfairly restrict foreign intellectual property rights holders from freely negotiating market-based terms in technology-related contracts and impose mandatory contracts concerning the import of technology into China.
Further information is available in document WT/DS549/1.
What is a request for consultations?
The request for consultations formally initiates a dispute in the WTO. Consultations give the parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.