China files complaint against the US at the WTO over tariff hikes
China will defend its legal rights in accordance with WTO rules, the country's Commerce Ministry said.
China, the world’s second-largest economy, has just filed a complaint against the United States (US) at the World Trade Organization (WTO) over US import duties.
The Chinese Commerce Ministry said on Monday (Sept 2, 2019) the US tariffs impacted US$300 billion of Chinese exports and the latest tariff actions from the US violated the consensus reached by leaders of China and the US in a meeting in Osaka.
China will defend its legal rights in accordance with WTO rules, the Commerce Ministry added.
On Sunday, the US, the world’s largest economy, began imposing 15% tariffs on some Chinese goods. Meanwhile, China retaliated with increased duties of between 5% and 10% on a range of American goods which included US crude oil and soy beans.
The lawsuit is the third of its kind China has brought to challenge the tariff hikes imposed by the US at the WTO. There is a limit to tariffs each country can charge, as guided by the WTO.
The US has defended their actions by saying that they are penalizing China for intellectual property theft which is not covered by WTO rules.
Under WTO’s rules, the US will have 60 days to settle the latest scuffle. If the US is guilty to have broken the rules, China could gain WTO approval to take trade sanctions. However, such a procedure may take several years to be resolved.
The US and some experts have pointed out China’s counter-measure to retaliate in tariffs on US goods imported into China as an act that is also, done without the approval from the WTO.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
