Trade

China started proceedings at WTO in relation to the zeroing measure used by the US in slapping anti-dumping duties on diamond saw blades from China. China argued that the US measure not only violated specific zeroing regulations of the WTO, but also levied disproportionately high tariffs on the subject imports from China.

Trade

Defying an earlier WTO panel decision, China released new quota figures for exports of rare earth metals, which would almost double the export quota for the second half of the year.

Trade

The US asked the WTO panel to look into its allegations that China is breaking WTO rules in restricting foreign credit card companies’ access to its payments system and imposing illegal emergency import subsidies against US steel.

Trade

For the second time in four months, the US filed a case against China with the WTO, this time accusing China of illegally subsidizing the production of wind power equipment. It alleged that a Chinese government fund awarded grants to makers of wind power equipment and the grants were contingent on manufacturers using parts made in China. The Chinese Ministry of Commerce said that China's measures to develop wind energy would help "reduce emissions and protect the environment" and are in line with the WTO rules. The US case was based on complaints by the United Steelworkers, an American trade union with no business to lose in China, whilst GE and other American clean energy companies have avoided taking positions on the matter.

Trade

China scored a victory at WTO when a panel supported China's complaint against the US over a measure on imports of poultry from China. The US imposed a ban on Chinese poultry products since the 2004 bird flu outbreak.

Trade

In its biennial review of China's trade policy, the WTO criticised China's extensive restrictions on its own exports, which China justified as measures to protect the environment and balance China's trade. WTO pointed out that export restraints may put a downward pressure on the domestic prices of these products, thereby giving "implicit assistance to domestic downstream processors of the targeted products."

Trade

The WTO appellate body upheld a panel ruling against China's restrictions on imports of US films and music, rejecting China's argument that the restrictions were necessary to protect public morals. The decision did not challenge China's right to censor foreign films and publications.

See previous post.

Trade

China lodged a last-minute appeal to the WTO Appellate Body against against a panel ruling issued in August 2009 on the US complaints on China's regulations on the import and distribution of books and audio-visual products. The panel had dismissed China's argument on the need to "protect" its citizens and children from pornography and other vices, saying China's measures were more restrictive than they needed to be to attain its objectives.

Trade
Dispute Settlement

China requested formal consultations at WTO over the US tariffs on tire imports from China. Whether the case will work out in favour of China is unclear, as the special safeguards measure was included as part of the price for China joining the WTO in 2001.

Trade

Citing a special safeguard provision and reversing previous policies, US President Obama announced that the US would impose a 35 percent tariff on automobile and light-truck tires imported from China, because Chinese imports were "disrupting" the tire market. The Chinese Ministry of Commerce denounced the decision, calling it violation of the WTO rule and America's "relevant commitments made on the G-20 financial summit". US officials said they were merely invoking tools that the US explicitly negotiated with China as part of her acceptance into the WTO. Later, the Chinese Government announced that it would start subsidies and anti-dumping investigations on American exports of automotive products and chicken meat.

Trade
Dispute Settlement

Complying for the first time with a WTO decision against China, the Chinese Government announced that it would reduce tax on imported auto parts. Along the four-year process of negotiations leading up to the decision of compliance, China may have lost the battle but won the war, as foreign automakers have been moving auto production to China on a large scale, and the Chinese announcement would have "virtually no impact" on them.

Trade
Dispute Settlement

Handing China a third defeat in WTO dispute settlement in the last 13 months, a WTO panel ruled in a case brought by the US that China violated fundamental WTO rules requiring national treatment as well as China's accession commitments by requiring the US movie studios, book and newspaper publishers, and record labels to go through a state-owned middleman company before they can sell their products to Chinese consumers. China may lodge an appeal on the panel decision, which some lawyers say China has little chance of winning.

Trade
Dispute Settlement

China requested the WTO to set up an expert panel to decide whether a US ban on Chinese poultry imports violates WTO regulations. China and the US banned imports of each other's poultry products in 2004 following outbreaks of bird flu, but later agreed to lift the bans. China now complains that the US did not keep her word after China did, calling it "naked discriminative protectionism measures, which are strongly opposed by the Chinese government and enterprises".

Climate Change
Trade

After the US House of Representatives passed a "cap and trade" bill that would impose a carbon tax on imports from countries that decline to limit greenhouse gas emissions, a Chinese vice foreign minister said China is "firmly against such attempts to advance trade protectionism under the pretext of climate change". It is interesting that China's charge appears to be at odds with an assessment by the WTO secretariat which gave a cautious nod to carbon tariffs.