The World Trade Organization ruled Washington had unfairly penalized imports of Chinese solar panels and other goods, the second time the body has faulted Washington's tactics in 10 days. The United States, through its Trade Representative Michael Froman, has taken action against a string of imports it says benefit from undeclared and unfair state subsidies - a trade distortion that is illegal under WTO rules. But the WTO's Appellate Body upheld part of a Chinese complaint about U.S. restrictions on its products, saying some of Washington's own determinations had broken global trade rules. The Chinese panels, wind towers and other products subject to U.S. punitive tariffs had not benefited from subsidies from "public bodies" favouring particular manufacturers, the WTO's ruling said. Ten days ago, the Appellate Body ruled that U.S. duties on Indian steel also broke WTO rules and asked Washington to bring them into line with its regulation. A spokesman for the U.S. Trade Representative's office said the latest ruling contained "a number of highly troubling legal interpretations of the WTO rules" on import duties. The WTO's rejection of some of China's arguments in the case meant "only a fraction" of China's claims had scored hits on specific U.S. anti-subsidy duties, the spokesman added. Sun Jinwen, a spokesman for China's Ministry of Commerce, said in a statement that the WTO's rejection of much of the U.S. appeal represented an important victory for China in an area of significant trade interests. "China expects the United States to face the reality of its long-standing, systematic violation of WTO rules in terms of its legislation and practice in the trade remedy field," the statement said. (Reuters)