By Bob Davis 

U.S. Trade Representative Robert Lighthizer on Wednesday told House lawmakers concerned about a brewing trade war that Trump administration actions against China were necessary because the World Trade Organization is "wholly inadequate" to deal with Beijing's state-dominated economy.

Mr. Lighthizer was called before House lawmakers Wednesday and will face senators on Thursday to discuss the Trump administration's coming metals tariffs and its planned actions to punish China over the alleged theft of American intellectual property.

The effort against China stems from a monthslong investigation by the administration into Chinese intellectual-property practices that found the damage to U.S. companies from forced technology transfer is $30 billion annually. The administration plans to release on Thursday a package of proposed punitive measures aimed at China that include tariffs on imports worth at least that amount, $30 billion.

The tariffs wouldn't be imposed immediately. Rather, U.S. industry would be given an opportunity to comment on which products should be subject to the duties. As part of the package, the White House will announce possible investment restrictions by Chinese firms in the U.S. and will direct the Treasury Department to outline rules governing investment from China.

In his prepared testimony, Mr. Lighthizer said the measures were needed because the WTO "has proven to be wholly inadequate to deal with China's version of a state-dominated economy that rejects market principles."

Lawmakers have also summoned Commerce Secretary Wilbur Ross for testimony on Thursday, where he is expected to be asked about how metal-consuming firms can be exempted from paying tariffs on steel and aluminum imports.

The Trump administration is set to implement global steel tariffs of 25% and aluminum tariffs of 10% on Friday. While many Democratic lawmakers and some Republicans support Mr. Trump's approach to trade, the GOP majority is sounding the alarm over broad measures it believes will hurt the economy and trigger retaliation from trading partners.

Mr. Lighthizer's Wednesday testimony before the House Ways and Means Committee also was expected to address talks to renegotiate the North American Free Trade Agreement.

He said in his prepared remarks that the U.S., Canada and Mexico "have made a great deal of progress" on a Nafta renegotiation, "but we still have a ways to go."

Write to Bob Davis at bob.davis@wsj.com

(END) Dow Jones Newswires

March 21, 2018 11:27 ET (15:27 GMT)