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China Asks WTO For $2.4B In Sanctions Against US

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China Asks WTO For $2.4B In Sanctions Against US

China is pressing international trade regulators to award it $2.4 billion in sanctions against the United States in a tariff dispute that started during the Obama administration.

The World Trade Organization ruled in July that the United States hadn't fully complied with an earlier WTO ruling in the case and that China could pursue sanctions against the U.S.

Reuters reported Monday that Beijing will seek to have the U.S. pay the sanctions, which are on the agenda for its Dispute Settlement Body.

Origin Of Dispute

The dispute stems from a 2012 complaint by the Chinese against U.S. countervailing duties — tariffs meant to counter subsidies placed on certain goods by the Chinese.

The U.S. tariffs were on more than $7 billion worth in Chinese exports, including solar panels and other energy components, as well as industrial goods. 

China's request to pursue the payment is set for the WTO’s Dispute Settlement Body to take up Oct. 28.

U.S. officials could challenge the sanction amount, which could result in arbitration. 

The old dispute comes as U.S.-China trade tensions remain high over newer disputes as the Trump administration pursues a broader trade war with Beijing over a wide range of issues.

President Donald Trump said last week that talks on the new issues have become more positive, and predicted a resolution, possibly by November. 

Related Links:

Understanding US-China Trade Negotiations: The Ultimatum Game

Report: China Wants More Talks Before Signing Trump's Phase 1 Trade Deal

Posted-In: Reuters trade war WTONews Global Media Best of Benzinga

 

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