The World Trade Organization has ruled that a US trade provision requiring imports from Hong Kong be marked as "Made in China," not "Hong Kong," violates the WTO rules.

The US introduced the requirement in 2020 under the Trump Administration as it suspended differential treatment in trade with Hong Kong following the enactment of the national security law. The US argued that Hong Kong was no longer sufficiently autonomous.

Hong Kong appealed to the WTO, saying the requirement was unfair as the US allowed other WTO members to use their regional name to indicate origin.

A report issued by a WTO dispute panel on Wednesday determined that the situation mentioned by the US in the case did not constitute an "emergency in international relations" as required by the WTO rules for suspending differential treatment. The panel concluded that the United States was in breach of its WTO obligations.

The Office of the US Trade Representative issued a statement on Wednesday, "The United States strongly rejects the flawed interpretation and conclusion in the World Trade Organization panel report."

The statement went on to say that the US does not intend to remove the marking requirement as a result of this report, and it will not cede its judgment or decision-making over essential security matters to the WTO.

The US could appeal the ruling, but a WTO appellate body has not been functioning since US opposition has blocked the appointment of new judges to the panel.