US-China Move to WTO | 03 Sep 2019

Recently, China has lodged a complaint at the World Trade Organization (WTO) over raised import duties by the US.

The US has recently imposed 15% tariffs on a variety of Chinese goods. In retaliation China imposed new duties on US crude oil, escalating the trade war between the two.
- Around $300 billion of Chinese exports are expected to get affected by this move of the US.
The latest tariff actions violate the consensus reached by the leaders of China and the United States in a meeting in Osaka.

This is the third legal suit filed by China at WTO challenging US protectionism policy against Chinese exports.
The US defended its move by claiming that it is penalizing China’s distortive technology-transfer policies.
- Also, these measures were necessary to protect public morals- a clause that was used in the past to argue for trade restrictions over gambling, animal rights, and public broadcasting.
- The Intellectual property (IPR) rules are not covered under WTO.
Under WTO rules, the US has 60 days to try to settle the latest dispute with China. Then China could ask the WTO to adjudicate.

China’s decision to fight fire with fire without WTO’s approval just escalates the trade tensions between the two nations.
If the United States is found to have broken the rules, China with WTO’s approval can retaliate against the trade sanctions.
Even though it is a lengthy and time-consuming process, the settlement of disputes through international conventions and rules is the need of the hour.