Appeal pending, China has had its first defeat with the World Trade Organization.

Upholding a complaint from the European Union, Canada and US, the preliminary WTO finding agrees that current Chinese practice is protectionist.

Under existing Chinese rules, its carmakers must use 60% Chinese-made parts - or pay higher taxes.

The ruling says China must end this policy to meet its WTO obligations.

Now, before you consider that much of important news, consider that China is still relatively new within the WTO, so losing this case is not that surprising, especially considering how long these cases take on the international stage.