Prime Minister Scott Morrison will call for urgent reform of the World Trade Organisation today by recognising the legitimacy of many of the United States' grievances with China and declaring international trade rules are no longer capable of dealing with Beijing's behaviour.

At the same time the Prime Minister will warn the "collateral damage'' caused by the US-China trade war was spreading and that both sides needed to resolve their dispute in a way which did not undermine the interests of other nations, including Australia.