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China lodges tariff case at WTO against the U.S.

Published 09/02/2019, 10:31 AM
© Reuters. A WTO logo is pictured on their headquarters in Geneva

HONG KONG/GENEVA (Reuters) - China has lodged a complaint against the United States at the World Trade Organization over U.S. import duties, the Chinese Commerce Ministry said on Monday.

The United States began imposing 15% tariffs on a variety of Chinese goods on Sunday and China began imposing new duties on U.S. crude oil, the latest escalation in their trade war.

China did not release details of its legal case but said the U.S. tariffs affected $300 billion of Chinese exports.

The latest tariff actions violated the consensus reached by leaders of China and the United States in a meeting in Osaka, the Commerce Ministry said in the statement. China will defend its legal rights in accordance with WTO rules, it said.

The lawsuit is the third Beijing has brought to challenge U.S. President Donald Trump's China-specific tariffs at the WTO, the international organization that limits the tariffs each country is allowed to charge.

U.S. officials say that they are penalizing China for theft of intellectual property that is not covered by WTO rules, although many trade experts say that any tariff hike above the allowed maximum must be justified at the WTO.

Many experts also decry China's decision to fight fire with fire, by imposing tariffs on U.S. goods imported into China, also without the WTO's approval.

On Friday the United States published a written defense in the first of the three legal cases, asserting that China and the United States agreed the issue should not be judged at the WTO.

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"China has taken the unilateral decision to adopt aggressive industrial policy measures to steal or otherwise unfairly acquire the technology of its trading partners; the United States has adopted tariff measures to try to obtain the elimination of China’s unfair and distortive technology-transfer policies," it said.

China had chosen to respond not by addressing U.S. concerns but with its own tariffs, "in an effort to maintain its unfair policies indefinitely".

The U.S. submission also said its actions were exempt from WTO rules because they were "measures necessary to protect public morals" - a clause used in the past to argue for trade restrictions over gambling, animal rights and public broadcasting.

Under WTO rules, Washington has 60 days to try to settle the latest dispute. Then China could ask the WTO to adjudicate, a process that would take several years. It could end with China gaining WTO approval to take trade sanctions, if the United States is found to have broken the rules.

Latest comments

China will win at the end
I told you guys ... China will not back down from no one. Today's China is strong enough that no other nation can pull a hair from their head. China is in good shape to keep on rising and will become the nation the world relays on to run businesses worldwide. US has lost the trust, and now China is here to fill the void.
Take US out of WTO.
She is a Walmart shopper, so she definitely is wearing China made goods.
Here comes trolls from China. WTO can't do ***to US. US needs to add laws "no trade deficit below 10% with every country" which means if US buys $100B from a country that country must buy $90 B from US too. Why US govt is forced to bring people and goods from rest of the world! It should be shopped asap! As an American do we get same opportunity from any other country? Simple answer is nope.
Are you talking just goods or services too? When you include services we actually have a massive surplus with most countries. That is because we are a service-oriented nation and we dont make “goods” to export. We provide accounting, legal, tech, etc. We do this because it is ridiculous to pay someone in this country $25/hr for what could be made for $2/hr in another country and then sell to that country our services which earn US workers much much more. Your math simply makes zero sense.
I will change the point of view of this "war" and say Tr um p wanted to rise taxes to the American people but not to get blame for the action is covering all with a trade war that has only brought recession, deceleration in world trade and low interests rates around the world. Good for him as a real estate businessman. Interesting no?
Can you be a little more interesting than hiding your real chinese identity under such a cliche Italian name as a disguise? No matter how you name yourself, your English is still Chinglish, China troll. LOL
Some people can't grab the concept of trarrifs. Ultimately it is about protection. Everyone imposes their own. American trarrifs have been historically lenient compared to our other trading partners.
Up Trump
Seems like China is trolling the comments sections. They’re not even changing their names to John Doe.
There's a serious flaw on trade war - it's counter productive and inflationary.
yuk Trump, just created an inflationary disaster. Don't you know that most Americans are poor people, now you're imposing a 15% cost of living to their everyday life , while the States Treasury Department gets a pay raise.
So china the worst cheater economical political is blaming and crying . Nice joke . Be a democracy first !
Can you even list one way youve been cheated personally? Or are you just a
So you are the nice joke, right?
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