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China launches WTO challenge over dumping fines

  • Author:Charlotte Bai
  • Source:BBC news
  • Release on :2016-12-14

China has filed a complaint with the World Trade Organisation over the way the US and Europe use anti-dumping rules against it.

Countries that sell exports below their cost of production - usually to get market share - have to pay duties as punishment.

But Beijing says its rates should now be reduced because China has been a WTO member for 15 years.

The US has signalled there would be no change in its approach.

And the European Commission said China's legal challenge was a "regret" given a proposal to change the way it calculated the duties on China was awaiting approval from the EU's 28 members.

Authorities in Washington and Brussels are keen to preserve tough rules prevent cheap Chinese products flooding their markets.


China joined the WTO in December 2001 and argues rules clearly say it should now be considered as "a market economy" - a status that merits a change in the way member states calculate anti-dumping duties on Chinese goods.

"Regretfully, the United States and European Union have yet to fulfil this obligation," China's Commerce Ministry said. "China reserves the right under WTO rules to resolutely defend its legal rights."

But the US Commerce Department said China's WTO accession deal did not require members to automatically grant it market economy status, and permitted it to keep using use "alternative antidumping methodologies."

"The United States remains concerned about serious imbalances in China's state-directed economy, such as widespread production overcapacity, including in the steel and aluminium industries, and significant state ownership in many industries and sectors. China has not made the reforms necessary to operate on market principles." a senior Commerce Department official said in a statement.

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