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US-China trade war
EconomyChina Economy

China seeking moral high ground against Donald Trump with WTO complaint over latest US tariffs, analysts say

  • Beijing has filed a lawsuit with the World Trade Organisation after Washington imposed the first batch of new tariffs on US$300 billion of Chinese imports
  • It is unlikely to solve the dispute, but Beijing is showcasing its support for multilateralism compared to unilateralism, analyst said

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US Treasury Secretary Steven Mnuchin (left), US trade representative Robert Lighthizer and Chinese Vice-Premier Liu He are the top trade negotiators from the United States and China but it has yet to be confirmed if they will meet again in September. Photo: Reuters
Zhou Xin

China’s move to file an official complaint with the World Trade Organisation over new tariffs from the United States on Chinese products is largely a symbolic attempt to gain the moral high ground by supporting the international trading system amid the ongoing trade war, analysts said.

The Ministry of Commerce announced in a statement on Monday, a day after Washington imposed the first batch of new tariffs on US$300 billion of Chinese imports, that China had filed a lawsuit against the US under the World Trade Organisation (WTO) dispute settlement mechanism.

It is not the first time that Beijing has resorted to the Geneva-based multilateral trade organisation to address its disputes against the tariffs imposed by US President Donald Trump. China formally complained to the WTO after the US levied a 25 per cent duty on US$50 billion of Chinese goods in July and August last year, and again in September 2018 after Washington placed 10 per cent tariffs on US$200 billion of Chinese goods.

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However, the WTO, which serves as the judge to settle trade disputes between member countries, has yet to rule on either of China’s previous two complaints and is unlikely to be able to rule on the third due to structural roadblocks erected by the US.

The WTO dispute settlement mechanism is in danger of ceasing to be able to function because the US has refused to approve any new judges to the body’s appellate division. If no new judges are approved by the end of 2019, the appellate branch will not have the minimum number required to hear cases.

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