Beijing’s first defeat at the WTO
Beijing (AsiaNews/Agencies) – The World Trade Organisation (WTO) has declared Chinese trade in auto parts incorrect and protectionist. China imposes that at least 60% of car parts used by automobile factories are made on National soil, or else it applies heavy taxes.
According to official US sources, the WTO has taken into consideration complaints lodged by the United States European Union and Canada, and has affirmed that these norms constitute a disadvantage for sales of foreign car parts compared to Chinese ones, and has asked China to eliminate these “less favourable” policies. Otherwise these countries will be authorised to impose sanctions on Chinese goods. The WTO’s final report, due in the coming months, is widely anticipated, even though China will be able to contest its findings.
It is the first time ever that China has been subjected to a WTO rebuke, since it joined the organisation in 2001, signing up to its International rules. Analysts observe that it is a sign that the country is now considered a mature and wealthy economy, and as such must respect the rules which govern international trade. Further complaints put forward by the United States regarding the protection of copyright for music and film are pending. For its part China has appealed limits imposed by the European Union on Chinese footwear.
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