Beijing said Tuesday it regretted a World Trade Organisation (WTO) decision to reject its complaint against punitive US tariffs on Chinese tyre imports.
The case centered on a 2009 decision by US President Barack Obama to invoke a safeguard clause in China's WTO accession agreement to impose punitive duties of 35 percent on Chinese tyre imports, citing damage to the national tyre industry.
That prompted China to lodge a complaint with the global trade watchdog. In December a panel rejected the complaint, a decision that China appealed.
On Monday the appellate body rejected China's arguments and ruled that the surge of tyre imports were "a significant cause of material injury to the domestic industry".
"China regrets it (the decision) very much," the commerce ministry said in a statement.
"China urges the United States to terminate the safeguard measures as soon as possible and ensure a fair competition environment for Chinese companies," it added.
US tyre imports from China declined by six percent in the first half of the year after falling 23.6 percent in 2010, said the statement.