China voices reservations as WTO backs US in dumping claims over American cars

BEIJING – China’s Ministry of Commerce (MOC) has expressed ‘reservations’  about a World Trade Organization (WTO) expert panel which has ruled that part of China’s anti-dumping and countervailing measures on certain vehicles from the US were inconsistent with WTO rules. Beijing imposed antidumping tariffs of between 2% and 8.9% on American cars and SUVs with an engine displacement of more than 2.5 litees in December 2011, saying that these vehicles were being sold to dealers in China for less than the full cost of manufacturing them.

The WTO reviewed the case for more than a year before backing the US, the third ruling in favour of Washington in recent years. Beijing and Washington have also disagreed on trade terms for broiler chickens, rare earth minerals, tyres, steel, and car parts. In a separate case the WTO is currently reviewing an American complaint that China has subsidised exports of car parts to the US.

The Obama administration has been increasingly aggressive in fighting trade battles with Beijing. Since 2009 the US has doubled the rate of fillings against China in an effort to limit China’s ability to use tariffs without following internationally-approved procedures