Ten years after joining the World Trade Organization, China still does not fully embrace many fundamental free market principles of the global trade body, the U.S. Trade Representative's office said on Monday, Dec 12 in an annual report to Congress.

"In 2011, the prevalence of interventionist policies and practices, coupled with the large role of state-owned enterprises in China's economy, continued to generate significant concerns among U.S. stakeholders," the USTR said.

"Looking ahead, essential work for China includes the need to reduce market access barriers, uniformly follow the fundamental principles of non-discrimination and transparency, fully embrace the rule of law, and fully institutionalize market mechanisms."

"Completing this work is critical to realizing the tremendous potential presented by China's WTO membership, including the breadth and depth of trade and investment - and prosperity - possible in a thriving, balanced global trading system," the report said, according to Reuters.