China files WTO complaint over US tire tariffs

The Chinese government on Monday filed a formal complaint to the World Trade Organization (WTO) over steep US tariffs imposed on Chinese-made tires.

"China put forward a formal request for consultations with the US under the WTO dispute settlement mechanism on the US special safeguard measures against Chinese tires," the Chinese mission to the Geneva-based body said in a statement.

"China believes that the above-mentioned measure by the US, which runs counter to relevant WTO rules, is a wrong practice abusing trade remedies," the statement said.

"China's request with the US for consultations is based on the normal pracice of WTO members under the dispute settlement mechanism and concrete action by China to protect its own interests," it added.

The Chinese mission also expressed hope that "all sides will understand its determination to firmly fight against trade protectionism so as to commonly safeguard the multilateral trading system by respecting WTO rules."

Under the WTO's dispute settlement system, the two countries will now have 60 days to try to resolve the dispute through consultations. If consultations fail, China can go further by requesting a WTO panel to investigate and rule on the case.

US President Barack Obama last Friday approved punitive tariffs up to 35 percent on all car and light truck tires from China in a so-called attempt to "remedy the clear disruption to the US tire industry."

When the US decision takes effect on Sept. 26, car and light truck tires imported from China will suffer punitive tariffs of 35 percent, 30 percent and 25 percent respectively during the next three years.

Talks with US

China has asked for talks with the United States on the tire tariff issue in accordance with the WTO dispute settlement process, the Ministry of Commerce (MOC) said Monday.

The US government's decision to impose special tariffs on tire imports from China violated WTO rules and was an abuse of trade remedy measures, the ministry's spokesman Yao Jian said.

"China's requirement for talks with the US is proper practice to exercise its rights as a WTO member and is a practical move to defend its own interests," Yao said.

"Although the duties the US has decided to impose are lower than those recommended by the US International Trade Commission (ITC), it is still a serious case of trade protectionism, which China resolutely opposes," said Vice Minister of Commerce Zhong Shan.

The ITC recommended US President Barack Obama impose a 55-percent tariff on Chinese tire imports, 45 percent in the second year and 35 percent in the third before being removed.

The Chinese government would take positive steps to assist domestic tire makers to overcome difficulties, Zhong said.

The government would also encourage and assist tire producers to optimize the structure of their exports and develop high-end products through technological progress, he said.

Following the US decision, shares of China's tire makers plunged Monday. Shares of the Double Coin Holdings Ltd. fell by the daily limit of 10 percent to 19.01 yuan (2.78 US dollars). Guizhou Tyre Co. lost 6.68 percent to finish at 14.95 yuan and Aeolus Tyre Co. sank 3.31 percent to 12.84 yuan.

Xinhua contributed to the story

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