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China to take United States to WTO

China to take United States to WTO

BEIJING – China announced it filed a World Trade Organisation challenge onMonday to US President Donald Trump’s proposal for a tarrif hike of $200billion on Chinese goods reacting swiftly amid deepening concern about theeconomic impact of their spiralling technology dispute.

The one-sentence Commerce Ministry statement gave no legal grounds for thechallenge or other details.

It is an unusually rapid move for a trade case, coming less than one weekafter the US Trade Representative announced the tariff plan which wouldn’ttake effect until at least September.

The USTR said last week that it proposed the levy in response to Beijing’sdecision to retaliate for US tariff hikes over complaints China is hurtingAmerican companies by stealing or pressuring foreign enterprises to handover technology.

China criticised the move but has yet to say whether it would retaliate forthe second round of tariffs. Its lopsided trade balance with the UnitedStates means it has only $80 billion of annual imports of American goodsleft for retaliation following its earlier measures.

Beijing has stepped up diplomatic efforts to recruit support from Europe,South Korea and other trading partners but so far without success.