The United States mistakenly supported China's membership in the World Trade Organization in 2001 on terms that have failed to force Beijing to open its economy, the Trump administration said on Friday as it prepares to clamp down on Chinese trade.

"It seems clear that the United States erred in supporting China's entry into the WTO on terms that have proven to be ineffective in securing China's embrace of an open, market-orientated trade regime," the administration said in an annual report to Congress on China's compliance with WTO commitments.

"It is now clear that the WTO rules are not sufficient to constrain China's market-distorting behavior," the report said.