The World Trade Organization has ruled that a U.S. ban on Chinese poultry is illegal, giving Beijing a win in the first international commerce ruling against the administration of President Barack Obama.
The WTO decision said the U.S. was violating a number of its trade obligations by preventing Chinese chicken parts from entering the U.S. market.
The WTO can authorize sanctions against countries failing to comply with trade rules, but that usually takes years of litigation.
The U.S. and China — the world's largest importer and exporter — also are arguing over regulations affecting commerce in steel, poultry, patents and Hollywood films.
Washington can appeal the 184-page verdict handed down on Wednesday.