BBC News
Getty ImageChina has accused the US of making “base and false claims” of its role in the fentanyl trade to justify tariffs on Chinese goods.
The complaint was filed with the World Trade Organization (WTO) a day after US President Donald Trump raised border taxes on Chinese goods by 10%.
In its submission, China said the measure was “discriminatory and protectionist” and violated trade rules.
However, experts warn that China is unlikely to secure its favorable ruling as the panel resolving trade disputes will not work. One former WTO official told the BBC that there was “no chance of success.”
The dispute arises when Trump’s tariff plan – a tax that he said he wants to be imposed on all foreign freight into the country – is causing uncertainty in the entire world’s trading environment. Masu.
Trump has said tariffs will encourage businesses to manufacture products in the United States and will repeatedly raise concerns about the size of the US trade deficit.
However, his actions against China, which he threatened to expand when he includes Canada, Mexico and Europe, have led to the global economy, including the US, in order to respond to trade uncertainties by companies maintaining and taking over investment. raised concerns about the impact of New costs to customers.
Canadian tights maker Sheltex announced on Wednesday that it would temporarily fire 40% of nearly 350 workers, citing customs questions.
The US importer reached record highs in December as businesses raced to secure foreign-made toys, cell phones and computers in response to tariff threats.
The value of goods brought into the US has increased by 4% to $293.1 billion (£23.4 billion) since November.
The rise also contributed to the widest trade deficit, or gap, between exports and imports, in almost two years.
The tariffs also spark political tensions, including retaliation from China. This responded to Trump’s moves, including tariffs on US goods and Google’s opposition investigation.
The speed at which China filed a complaint with the WTO indicates that Beijing is ready for the trade war.
On Wednesday, Bloomberg also reported that the country’s anti-massive regulators had hit the company’s stock, preparing for possible investigations into Apple’s policies and App Store fees.
Trump Movement – Ordering the end of tax-free handling of parcels under $800 will be a major “shock” for some companies, such as Shein and Temu, as it erodes its ability to offer ultra-low prices Ta. Mark Williams, China’s economic manager at Capital Economics.
But he said he thought China-wide that the effects of Trump’s tariffs would not be so harmful.
“For the wider Chinese economy, this is definitely easier to manage,” he said.
The WTO process gives the US and China 60 days to resolve the dispute through consultation, at which point China has the right to request a ruling by a panel of judges.
However, the final WTO panel, which resolves trade disputes known as the Appellate Authority, cannot function as the US refuses to approve the appointment of a new judge.
The US also ignored previous findings in the WTO that previous tariffs on steel and aluminum imposed during Trump’s first term were against the rules.
However, Tom Graham, who chaired the WTO’s appeals body in 2016 and 2019, said that there was a decision from the first phase of Beijing’s complaints and that there was little chance of further progress. He told the BBC it “it will probably take a year.”
“It could be a powerful case. It’s the way the WTO’s dispute resolution system worked, but there’s no chance that it will ultimately succeed here,” he said.
Jeff Moon, who worked on President Barack Obama’s trade policy, told the BBC he hopes for the first WTO decision to support China’s position.
However, these cases usually take years to resolve. “The final decision will never be issued” because the appeal process is paralyzed.
A former US trade representative on China’s issue said Beijing should file a lawsuit to support the frequently stated position that it is the US that undermines the rules-based trading system and relations between the two countries. I added it.
China ranked county in December with the largest deficit in its products, sending $25.3 million more to the US than it bought.
The European Union, the target of Trump’s tariff threat, had the second largest gap.
In contrast, the US enjoyed a small surplus of $2.3 billion in commodity trade with the UK.
Overall, the US trade deficit, including services, rose 17% last year to a total of $91.84 billion, as export exports rose faster than exports.
In December, the trade deficit for goods and services was $98.4 billion, the highest since March 2022, the Commerce Department said.
