Wed | Oct 17, 2018

China files WTO challenge to US $200B tariff plan

Published:Monday | July 16, 2018 | 2:39 PM
In this July 13, 2018, photo, a child selects shoes as Chinese made children shoes carrying a Chinese map and U.S. flags are on display for sale at a shop in Beijing. China announced it filled a World Trade Organization challenge Monday to U.S. President Donald Trump’s proposal for a tariff hike on $200 billion of Chinese goods, reacting swiftly amid deepening concern about the economic impact of their spiraling technology dispute. (AP Photo/Andy Wong)

BEIJING (AP) — China announced it filed a World Trade Organization challenge Monday to President Donald Trump’s latest tariff threat, stepping up its diplomatic efforts to counter U.S. pressure in a spiralling technology dispute.

The Trump administration has criticised the WTO as unable to deal with the problems posed by China, suggesting a challenge there might have little impact in Washington.

But it might help Beijing rally support from governments that criticised Trump for going outside the WTO to impose tariffs on Chinese and other imports.

The move is unusually swift, coming less than one week after the U.S. Trade Representative proposed 10 percent tariffs on a $200 billion list of Chinese goods.

Those wouldn't’t take effect until at least September.

China’s lopsided trade balance means it will run out of U.S. imports for penalty tariffs before Washington does.

Beijing is trying to recruit support, so far in vain, from Europe, South Korea, and other governments.

“We are unable to fight equally,” said Tu Xingquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing.

Monday’s move “indicates that we value the role of the WTO rules,” said Tu.

Washington imposed 25 percent tariffs on $34 billion of Chinese goods in response to complaints Beijing steals or pressures companies to hand over technology.

Beijing responded immediately by imposing identical penalties on a similar amount of American imports.

It has criticised the latest tariff threat but has only about $80 billion of annual imports left for penalties.

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