Chinese Law Prof Blog

Editor: Donald C. Clarke
George Washington University Law School

Thursday, February 14, 2008

More on the WTO auto parts ruling against China

Readers who have access to the BNA's WTO Reporter can see a fuller report here. The panel's report is a preliminary ruling that is still confidential. A final ruling is expected at the end of March.

For those not familiar with the dispute, it involved the imposition of increased duties on auto parts (normally about 10%) equivalent to the duties on complete cars (normally about 25%) if the imported parts exceeded a fixed percentage of the final vehicle content. China's argument was that this was necessary in order to prevent evasion of the duty on complete cars by simply importing the parts and assembling them in China. According to the BNA report, "Officials familiar with the confidential ruling told BNA that the panel rejected nearly all of China's arguments in defense of regulations that the United States, the EU and Canada said resulted in illegal duties being imposed on imported auto parts. The panel also declined to rule on a number of claims made by the complainants on grounds of judicial economy."

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I am a Chinese student doing llm program in GWU.
I have been concerned about China's trade practise after being a member of WTO. In this atuo parts case,
what China was arguing is really true at a minimum that I knew most of Foreign Investment Comanpies in Shanghai which invested in the manufacture industry ,especially the atuomobile industry, tried to import all auto parts and assemble them in China's free duty area. Actually, it is not fair for China to bring the regulations completely compliance with the WTO rules. It'd better for both sides to sit down and come to mutual agreements with the matter at hand.
If China open the market for imported automobile, then the China's natioanl industry will encounter big problem and even be toatolly destroyed. Then the China will take countermeasure for selfprotection.

What's the result? The problem is still unsolved. It is not win-win solution for China and her trade partners in the world.

Posted by: Lanxin Chen | Feb 19, 2008 10:17:22 PM

It's a great article.everyone should to read it.

Posted by: Lindsay | Jun 9, 2008 1:49:57 AM

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