The European Union on Thursday said it will appeal — via arbitration and not the defunct Appellate Body — a World Trade Organization dispute panel’s finding that while China was limiting some intellectual property rights of foreign-held companies, its practices did not violate WTO rules.

Brussels initiated the dispute in February 2022, escalating it to the panel stage later that year. The U.S. has previously backed the bloc’s position and sought to join the dispute shortly after it was initiated…