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Latest update: 14/09/2009
- China - trade - USA - WTO
China files complaint with WTO over US tyre tariffs
A new trading argument between China and the United States has emerged after Beijing lodged a complaint with the World Trade Organisation over what it deems to be a "wrong practice" concerning US tariffs on Chinese tyre imports.
AFP - China on Monday hauled the United States to the World Trade Organisation over what it alleged were unfair tariffs imposed by Washington on Chinese tyre imports.
"On September 14, China put forward a formal request for consultations with the United States under the WTO dispute settlement mechanism on the US special safeguard measures against Chinese tyres," said the Chinese embassy in a statement.
"China believes that the above-mentioned measure by the United States, which runs counter to relevant WTO rules, is a wrong practice abusing trade remedies," it added.
The White House on Friday imposed punitive duties of an extra 35 percent on Chinese-made tyres amid warnings that a surge in the Chinese-made goods had cost more than 5,000 jobs in the United States.
Beijing and Washington now have 60 days to hold bilateral consultations on the issue. If it is not resolved at the end of the period, the WTO would rule on it.
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Comments (1)
trade war
China could not possibly win a trade war due to it's dependence on trade as a motor for growth. China has a huge trade surplus while America has a huge trade deficit. China knows it cannot win. However what it does know is the impact of the threat. The impact will be felt mostly on the American businesses profiting from this unequal trade. These Chinese partners will then LOBBY congress. Add this to the millions being spent by China in their own lobby effort and the result will be lobby victory. China has truly learned what it takes for success with the American government.