China's Appeal on WTO Report on China's Auto Parts Investigation

On the 15th, China appealed on the results of the ruling of the World Trade Organization Expert Group on the EU, the United States, and Canada in suing the Chinese auto parts import management measures, and requested the WTO Appellate Body to review the case and make a fair decision.

The Chinese Permanent Mission to Geneva on the same day issued a statement saying that after careful study, the Chinese side could not fully agree with the legal interpretation and conclusion of the panel of experts in this case. According to the WTO dispute settlement procedures and rules, the Chinese side appealed and it is hoped that the WTO Appellate Body can make a fair decision.

It is understood that the Chinese delegation has already notified its dispute settlement bodies and appellate bodies of its appeals and put forward the legal points of appeal regarding this case. The relevant documents have also been copied to the three parties of the European Union, the United States and Canada.

The WTO Appellate Body normally takes 90 days to hear the appeal case and make a ruling. Its verdict will no longer be overturned.

According to relevant procedures, trade disputes between WTO members are preceded by a panel of experts and a ruling report is published. If the party is dissatisfied with the ruling of the panel, it may appeal to the appellate body.

The Expert Group of the Dispute Settlement Agency of the World Trade Organization announced on July 18 the ruling on the dispute between China and the United States, the European Union and Canada on the dispute between auto parts. According to the report, China’s taxation of imported vehicles by more than 60% of imported parts and components constitutes discrimination against imported auto parts and therefore violates relevant trade rules.

Officials of the Ministry of Commerce of the People's Republic of China previously stated that China’s auto parts import management regulations are designed to prevent lawbreakers from using the tax difference between vehicles and parts to evade Customs supervision and evasion of customs duties, as well as measures to combat illegal assembly and protect the interests of consumers. . Since its accession to the WTO, China has been earnestly fulfilling its commitments, which has greatly reduced the tariffs on auto and auto parts and provided trading partners with unprecedented access to the automotive and auto parts market.

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