10 questions about China law - Essay Example

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10 questions about China law

China violated the most-favored nation treatment in China's integrated circuit case as it tried to protect the domestic industry.It has followed discriminate tax policy in which it imposed 17 % value added tax on foreign imports (majorly American imports) and had given refund of VAT to the domestic products costing them only 3 %. This is in violation of WTO rules as the country cannot discriminate against foreign products. Hence U.S.A filed a case against China in WTO in 2004.According to the U.S.A and European Union, China had violated the national treatment in the China's Auto parts case as it followed protectionist policy for its domestic auto-industry. United States of America and European Union have filed a case in WTO under dispute settlement mechanism alleging the unfair treatment of China towards foreign auto parts. China's complex tariff system is the main reason for favoring domestic industry and damaging the interests of foreign auto companies. However it may not be true completely as some analysts find political reasons behind this complaint. Majority car making companies in China are having collaboration or joint venture with foreign firms and hence will get the benefit of low cost domestic spare parts that result in lower manufacturing costs. Hence they will not prefer purchasing higher cost imported spare parts from foreign companies.The term "like product" means the product that is identical to the dumped import, or in the absence of such a product ...
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China violated the most-favored nation treatment in China's integrated circuit case as it tried to protect the domestic industry.It has followed discriminate tax policy in which it imposed 17 % value added tax on foreign imports (majorly American imports) and had given refund of VAT to the domestic products costing them only 3 %…
Author : abernhard

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