China announced on Saturday it has accepted a request from both the European
Union and the United States for talks with China on auto parts tariffs under the
World Trade Organization trade dispute settlement mechanism.
China's Ministry of Commerce said the timing and location of the talks has
yet to be decided.
On March 30 in Brussels, WTO commissioners of the EU and the United States
sent their requests to China's WTO commissioner Sun Zhenyu, seeking WTO talks
with China on car parts tariffs.
The EU complained that some of China's rules on car import tariffs are not in
accordance with WTO rules putting European car manufacturers at a disadvantage
compared to local producers.
In responses to the request, Cong Quan, the spokesman of the Chinese
ministry, expressed regret on the European Union's plan to file a WTO complaint
against China's rules over imports of auto parts.
He said China is seriously considering the request for dispute settlement
consultations from the EU and US on auto parts makers.
China said that China's tax are aimed at curbing tax evasion by some foreign
auto manufactures, saying that some of them disassemble their cars before
importing and then reassemble them in China thereby avoiding customs payments on
importing whole cars.
Under WTO rules, if a resolution is not found in 60 days, then the EU and
China can ask a WTO panel to rule on the dispute.
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