At the meeting convened by the World Trade Organization Dispute Settlement Agency on the 28th, the Chinese delegation rejected the WTO-organized expert group proposed by the United States, the European Union, and Canada to carry out investigations on China's auto parts import management regulations.
Ambassador Sun Zhenyu, Permanent Representative of China to the World Trade Organization, said at the meeting that the U.S., EU, and U.S. parties disregard China’s efforts to resolve disputes and insisted on setting up an expert group at this meeting. China regrets this. He said that China has shown great sincerity in the previous consultations. China also hopes that further consultations will be held so that disputes can be settled in a manner satisfactory to everyone.
He said that since China’s accession to the WTO, China has been earnestly fulfilling its commitments, including its commitment to the trade in automobiles and auto parts. China has greatly reduced the tariffs on auto and auto parts, and China now provides trading partners with unprecedented access to the automotive and auto parts market.
Regarding China's auto parts import management measures, Sun Zhenyu said that China firmly believes that these measures are in line with the WTO rules. These measures are designed to prevent lawbreakers from using the tax differences between vehicles and parts to evade customs supervision and evade customs duties, and do not discriminate against imported products.
Sun Zhenyu said that in view of the above reasons, the Chinese side could not agree with the request of the United States, Europe, and Canada to set up an expert group.
The U.S., Europe, and Canada three parties believe that China’s practice of taxing vehicles with more than 60% of their parts and components will discriminate against imported auto parts and violate the WTO rules. From March to April this year, the U.S., EU, and U.S. parties negotiated with China on the auto parts dispute but failed to reach an agreement. On the 15th of this month, the United States, Europe, and the United States officially requested the WTO to set up an expert group to investigate China’s practices.
According to the WTO Dispute Settlement Rules, the request for the establishment of an expert group can only be rejected once. Therefore, if the U.S., EU, and Canada parties again propose to set up an expert group meeting at the next meeting of the Dispute Resolution Agency held in October, the Chinese side will not be able to refuse the WTO. The dispute settlement agency will automatically set up an expert group to conduct relevant investigations.
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