Parts Tariff Dispute Appeal To Gain Time For The Industry
Parts Tariff Dispute Appeal To Gain Time For The Industry
China before the World Trade Organization Expert Group on the European Union, the United States and Canada against China Car Parts Import Management Measure the results of a case to appeal the ruling, the WTO Appellate Body asked the case be heard again and make a fair ruling.
"WTO Panel's views rarely change, China was overturned by the appeal is unlikely. China is overwhelmed by the actual practice of what attitude to the table, for the domestic industry for some time and then win it." Expert interview generally agreed that the key is that China should adopt the case, familiar with international rules to speed up, speed up transformation and upgrading of domestic industries.
Turnaround unlikely
The World Trade Organization Dispute Settlement Body Panel on July 18 published on China and the United States, the European Union and Canada's ruling tripartite auto parts dispute the report. Report that China's more than 60% over vehicle parts imports by the practice of vehicle tax on imported auto parts constitute discrimination, breach of the relevant trade rules. This is the first time since China's accession to the WTO trade dispute lost.
In accordance with the relevant WTO rules, China Expert Group report in 60 days from the date of publication to decide whether an appeal. WTO Appellate Body of the sitting time is generally 60 days, a maximum of 90 days. Appellate Body may confirm, modify or reverse the legal findings made by an expert panel and results. China has in a specified time to go the last one program, then wait for a final decision of the Appellate Body.
Institute of Industrial Economics Chinese Academy of Social Investment and Market Research Office Dr. Cao Jianhai that dissatisfaction expert judgments, in accordance with the WTO dispute settlement procedures and the appeal is international practice, both to delay the time for the Chinese automotive industry for more room to grow, but more important is to show that the positive response to posture change in the past, trade disputes developed in our impression of taking the initiative on the dodge.
Lawyer, said Fu Donghui, although this is the first time since China's accession to the WTO trade dispute in the losing, but on the whole industry and the market impact is not significant. However, the Chinese government in the future how to deal with similar issues of concern, this is a display of how to better integrate into the WTO the opportunity to speed up the familiar rules of the game. The "training" to help officials of WTO rules to further control the better for the national interest. This has gone beyond a trade dispute itself.
Industrial development should not block sparse
Early, technology exchange market is a leading market for the many. To the "Eleventh Five-Year" period, the Government proposed "self-brand over 50% market share," the goal, but back to square one market easier said than done.
Addition to "constitute the characteristics of auto parts imported vehicle management approach", seems to find a better way. Cao Jianhai that the "management approach" is only setting the threshold type to "block" the main response of thinking. After the final ruling in the WTO, China's automobile industry development policy guidance to prevent multinational companies from the industry on the impact and penetration components, turn how to better cultivate and improve the overall domestic independent parts manufacturers innovation and sustainable development capacity. Vehicle in support of its own brand of domestic enterprise development, it should also support local auto parts enterprises have specific policy ideas.
However, China's auto parts industry is now operating bleak, lack of R & D capability, not in a huge car market share in future.
Specific proposals such as government procurement to domestic brand inclined to support the high localization rate of products; to give some tax incentives of domestic parts enterprises; investment funds engaged in R & D and so on. Of course, the premise is not contrary to WTO rules.
The same situation in import duties, why importers in other countries do not import assembly selling scattered to escape vehicle tax practice? Cao Jianhai that is rooted in our investment policy, foreign investment to China is very low cost, basic white to the land, cheap labor, but also enjoy special tax concessions, therefore, a low rate of import auto parts scattered, and then at home assembly of the sale, the high tax rate than the imported vehicle is much more cost-effective.
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