China Business

Apr 4, 2006

China 'regrets' EU auto parts complaint

BEIJING - China's Ministry of Commerce has expressed regret over the European Union's plan to file a WTO complaint against China over auto parts.

The ministry posted March 31 on its official website the statement of spokesman Cong Quan on the issue. Cong claimed that China

is seriously considering the request for dispute settlement consultations from the EU and US on auto parts.

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 accord with WTO rules, putting European car manufacturers at a disadvantage compared to local producers. The US complaint was similar.

China claimed that these measures, which charge a higher whole-vehicle tariff when the number of auto parts imported exceeds 60% of a vehicle's total value, are aimed at curbing tax evasion by some foreign auto manufacturers, saying that some of them disassemble their cars before importing and then reassemble them in China thereby avoiding customs payments for 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.

(Asia Pulse/XIC)

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