Germany's powerful machine-tool makers' federation said Monday that China should submit to the same international trade rules as developed countries, rather than enjoy emerging-economy leg-ups.

China -- the world's second-largest machine-tool exporter after Germany -- has got away with "subsidy distortions and unequal market access" at the World Trade Organization (WTO), the VDMA industry body said.

"In many areas China has long since ceased to be a developing country. Therefore, the same international trade rules must apply to China as to Germany or the EU," it added.

Subsidies allow Chinese firms to hide the true costs of production, the VDMA argues.

It pointed to areas like the solar panel market, where cut-price surplus product from China flooded international markets and helped drive competitors out of business, notably in Germany.

Since joining the WTO in 2001, China has committed like other member states to inform the organisation of its subsidy schemes.

"Practice shows that this is only done to a limited extent," the VDMA charged.

In future, reporting should be "sharpened and every non-notified subsidy must automatically be classified as market-distorting - combined with the possibility of countermeasures," the federation's international trade chief Ulrich Ackermann said.

While the European Union does not distinguish between its own and foreign companies in public procurement, China does not reciprocate.

And it is difficult for buyers to determine whether a Chinese bidder upholds international labour, human rights or sustainability rules.

The VDMA urged that access to EU markets should only be allowed to companies from third countries that have signed a "binding bilateral agreement granting reciprocal equal, transparent and non-discriminatory market access".

And it also called Brussels and Beijing to finalise an accord to liberalise investment flows between the EU and China, which has been under negotiation since 2013, "so as not to further encourage unfair competition".

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