The European Union (EU) and the United States have called on the World Trade Organisation to pressure China to open up its $US19bn automotive components market, according to Reuters.
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They say that Beijing’s tariff policies hinder access to the market by overseas component manufacturers and they have accused China of unfairly helping its exporters. The US says that China deliberately holds the value its yuan currency, reported Reuters.
The first measure would be for the parties to participate in consultations on automotive component tariff rules. If these failed a WTO dispute panel would rule on the issue.
The dispute concerns the fact that China considers parts a “whole vehicle” if they account for 60% or more of the value of the final vehicle and therefore charges a higher tariff on them.
