WTO rules against China over auto parts dispute
The World Trade Organization (WTO) ruled against China over its auto parts dispute with the United States, the European Union and Canada.
It largely upheld US, EU, and Canadian complaints that Chinese tax measures on imported auto parts violated WTO rules.
China considers auto parts as a complete vehicle if they account for 60% or more of the value of a final vehicle and charges a higher tariff on them.
Chinese trade officials said the measure is meant to keep “lawbreakers” from exploiting the differences between tariff rates for importing entire automobiles and auto parts, and to protect consumer interests.
However, the three complainants argue that the Chinese tax measure deters auto-makers from using imported parts to build cars in the country, which costs jobs abroad.
This is the first time that the WTO has ruled against China in a trade dispute.
China still has the right to appeal. (Xinhua)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.