China Files Case At WTO Over U.S. Tariffs

Topline: China has officially complained to the World Trade Organisation over the latest U.S. tariffs on billions of dollars worth of Chinese imports, a day after the two nations embark on a new round of tit-for-tat duties, Reuters reported.

-The complaint by China’s Commerce Ministry relates to tariffs on $300 billion worth of Chinese exports, which included consumer goods like watches, nappies and shoes. Further details of the legal case were not released.

-It comes as the U.S.-China trade war reached new heights. Following Washington's 15% tariff on Chinese goods, Beijing imposed a fresh 5% duty on U.S. crude oil, as part of a wider package of taxes on $75 billion worth of American goods. Tariffs on American soybeans will rise by 5% to 30% from mid-December.

-The U.S. also has a second stage of tariffs planned for December 15. President Donald Trump said these were delayed to protect consumers shopping for the holiday season.

-China's Commerce Ministry claims the U.S.’ latest move is a breach of an agreement reached by President Trump and Chinese President Xi Jinping at the G20 summit in Osaka in June.

-Retailers have been left with little choice but to pass the growing cost of Chinese-imported goods to consumers. University of California research cited by the BBC estimates that by the time all new tariffs are imposed by December, it could cost U.S. households an extra $800 a year.

What to watch for: The U.S. has 60 days to settle this latest legal case, which is the third brought by Beijing against Trump-imposed tariffs. That could see China asking for the WTO, which determines the maximum level of duties that can be imposed, to adjudicate, Reuters reported. The process could take years.

Key background: By December, all of the $550 billion worth of Chinese goods imported by the U.S. will be affected by Trump's punitive duties, as Washington is set to increase existing 25% of tariffs on $250 billion worth of Chinese goods, to 30% from October 1.

The U.S. has justified its tariffs by claiming they are a response to China’s “aggressive industrial policy measures” and alleged theft of intellectual property, an issue which the States said should not be judged by the WTO, although critics think otherwise. China has denied the claims of unfair trade and retaliated with tariffs of its own, leading to a trade battle which has rocked markets and triggered fears of a global recession. Trump’s hopes of a breakthrough were dashed following the G7 last week, after Beijing denied that it had held talks with U.S. officials about restarting negotiations.

https://www.forbes.com/sites/isabeltogoh/20...s/#561d3c0b2d09

Meanwhile, certain American companies are not allowed to operate in China or to tie up partnership with someone in the communist party. I find China amusing.

China Trade War - Layman's Guide
18 May 2019
https://forum.lowyat.net/topic/4780582

I sokong China, down with Trump