China, EU push for multilateral solution

Economies oppose tariffs, protectionism

China and the EU oppose protectionism and hope to address trade disputes with the US under the multilateral trade system, experts said.

The EU on Monday requested to join consultations brought by China to the WTO over US import tariffs on steel and aluminum, Reuters reported, citing the world body.

This comes about a week before the US is expected to decide whether to apply the duties to Europe.

The EU claims that its interests were “substantial” because if the exemption ends then the US tariffs would affect EU exports, the WTO said.

“Considering its interests, the EU applied for the consultations in hopes of getting exempted from metal tariffs from the US. Meanwhile, the bloc wants to bring the US back to the multilateral trading system to resolve trade disputes,” Sang Baichuan, director of the Beijing-based Institute of International Business at the University of International Business and Economics, told the Global Times on Tuesday. The EU shares China’s opposition to protectionism

and hopes to help protect the world economy, said Liu Jianying, an associate research fellow at the Ministry of Commerce’s (MOFCOM) Chinese Academy of International Trade and Economic Cooperation.

Liu said that the EU is also worried that the US tariffs will force cheap steel and aluminum to flow to Europe.

In March, the US slapped a 25 percent tax on imported steel and 10 percent on aluminum, citing national security concerns, while exempting the EU until May 1.

Other countries, including Canada, Mexico, Australia, Argentina, Brazil and South Korea, also received temporary exemptions.

On April 5, China filed a request for consultations with the US under the WTO dispute settlement framework.

The US measures are “trade protectionism in the name of national security,” MOFCOM said.

By imposing tariffs on some of the WTO members, including China, while selectively excluding other countries and regions from its target list, the US has seriously violated the principle of non-discrimination in multilateral trade, the ministry announced.

Separately on Monday, India, Russia, Norway, Singapore, Switzerland, Turkey and Venezuela also showed their disappointment with the US tariffs on steel and aluminum, media reports showed.

Reactions from these countries showed that unilateralism and protectionism adopted by the US go against the growth trend of the global economy and will definitely lead to more objections, Sang said, noting that under such pressure, the US could return to the multilateral trade system.

“But the US is more likely to slap long-term trade remedy measures against China and some other countries. Under such conditions, the US’ return to the multilateral trade system would merely be a publicity stunt,” Sang said.

IPR progress

US protectionism is a challenge to global free trade and China believes that under the WTO’s dispute settlement mechanism it can defend its legitimate rights, Liu said.

China will reiterate its stance on the US Section 301 investigation at a WTO meeting on Friday, domestic news site yicai.com reported on Monday.

On March 23, US President Donald Trump signed a memorandum that could impose tariffs on up to $60 billion worth of Chinese goods. The memorandum is based on the Section 301 investigation into alleged Chinese intellectual property and technology transfer practices.

The outcome of the investigation ignores the fact that China has been making efforts to protect intellectual property rights (IPR), said Shen Changyu, head of the State Intellectual Property Office.

“Many knowledgeable people in the US recognize China’s achievements in building an IPR protection environment, and it has been successful,” Shen told a press conference in Beijing on Tuesday.

In the coming years, China will further advance IPR protection and create a better business and innovation environment for foreign enterprises, Shen added.