Beijing has accused Washington of imposing “discriminatory and protectionist” tariffs on Chinese goods in a complaint lodged with the World Trade Organization (WTO), according to multiple media reports. The filing, made on Wednesday, also criticises US President Donald Trump for his “unfounded and false allegations” about China’s role in the US fentanyl crisis.
The complaint follows China’s threat of retaliatory measures against the US, which began enforcing an additional 10 percent duty on imports from China on Tuesday. Beijing’s response would include punitive duties and export controls on critical minerals from 10 February, giving the US a window of opportunity to back down – as it has on 25 percent tariffs imposed on Canada and Mexico.
Trump has accused all three countries of being complicit in the US’ deadly synthetic opioid crisis, and maintains that new tariffs will force them to step up when it comes to stopping fentanyl’s components from reaching the US. But he has also repeatedly expressed concerns over the US trade deficit. Trump focused much of his election campaign on promising to boost US manufacturing, and making Chinese products more expensive through tariffs could help domestic goods become more attractive.
[See more: Durian demand in China drives record trade]
China’s WTO complaint is unlikely to make an impact on the US’s decision over whether to keep imposing its new tariff rate. Several trade experts told the BBC it was a futile endeavour because the body’s trade disputes panel was effectively suspended.
The WTO’s appellate body has been paralysed since late 2019, when the US – during Trump’s first term as president – started blocking the appointment of new judges to the seven-member panel. The decision was maintained by President Joe Biden’s administration and the panel currently has no members.
The former chairman of the WTO’s appellate body, Tom Graham, said that while China might have a strong case against the US, “it has no possibility of succeeding here ultimately.” A China trade policy expert who worked for former US president Barack Obama, Jeff Moon, told the BBC that while he would expect the WTO to support China’s position, the reality was that “a final decision will never be issued” due to the appeals process being immobilised.
