China demands US lift tariffs on steel, aluminum after WTO ruling
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China says its countermeasures taken in accordance with the law are "a legitimate move to safeguard its legitimate rights and interests."
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An aerial view of the Yangshan container in Shanghai, China, on July 10, 2021 (AP)
China's Commerce Ministry on Wednesday demanded that the United States immediately lift the tariffs imposed on Chinese steel and aluminum imports.
The Ministry made the comments in response to a World Trade Organization (WTO) dispute settlement panel, which found China imposing additional duties on certain imports from the United States.
China has taken note of the WTO panel finding and is studying the report, the Ministry said, blaming the root cause on "the unilateralist and protectionist behavior" of the US side.
"The countermeasures taken by the Chinese side in accordance with the law are a legitimate move to safeguard its legitimate rights and interests," it added.
This came after a World Trade Organization (WTO) dispute settlement panel ruled on Wednesday that China violated its WTO commitments by putting extra charges on some US imports, although these come in response to US steel and aluminum tariffs.
Based on the Donald Trump administration's "Section 232" national security inquiry of steel and aluminum imports, the United States levied a 25% levy on steel imports and a 10% duty on aluminum imports in March 2018.
Read more: WTO: US tariffs violate global trade rules, US: you have no power here
However, the panel suggested that it is China that should bring its "WTO-inconsistent measures into conformity."
Beijing might challenge the finding, but this would result in a legal void because Washington has blocked nominations to the WTO Appellate Body, making it unable to issue a decision.
Last year, the World Trade Organization determined that the US move violated international trade norms, and Washington appealed the ruling.
In reaction to the US charges, China stated that additional duties ranging from 15% to 25% will be levied on select goods originating in the US, a move that Washington has contested.
The US promised to eliminate tariffs on EU goods in 2021, but President Joe Biden's administration has left the metals tariffs that were a centerpiece of Trump's America First campaign in place.
In December, China filed a case with the WTO, hitting back against US export sanctions on microchips, further fueling the tech war between Washington and Beijing.
China's Ministry of Commerce said its WTO complaint was a legal and necessary measure to defend its "legitimate rights and interests."
In August 2022, US President Joe Biden signed a landmark bill - the CHIPS and Science Act of 2022 - which will allocate $52.7 billion to subsidize semiconductor production and research in a bid to boost incentives to make the US more competitive with China's science and technology efforts.
