Keep your promises
China files official complaint with World Trade Organization over US and EU's failure to withdraw anti-dumping penalties
In a reversal of roles, China has filed a complaint with the World Trade Organization over the failure of the United States and the European Union to honor promises made 15 years ago when China joined the global trade body. Usually they are the ones demanding that others obey international rules.
"China urges each party to keep their word, observe international law and fulfill their international obligations," said Minister of Commerce Gao Hucheng on the 15th anniversary of China's entering the WTO.
"As for those who refuse to keep their promises, China will adamantly protect its legitimate interests and reserve the right to take further measures."
On Dec 12, the day after China's WTO transitional period ended, Beijing notified the WTO Secretariat that it had requested dispute consultations with the United States and the European Union over their refusal to act on promises in the WTO accession documents.
Article 15 of China's WTO entry protocol allowed other members of the WTO to employ the so-called "surrogate country" mechanism to calculate anti-dumping penalties against Chinese products. It clearly states that the provision expires 15 years after China's accession, which would be Dec 11 this year.
Starting on Dec 12, China's domestic prices - not those of a third country - should be used as references when WTO members calculate dumping margins, if such cases emerge.
Gao said that since this obligation was written into the international treaty, each WTO member should fulfill it by abolishing the "surrogate country" system as scheduled.
Xue Rongjiu, deputy director of the Beijing-based China Society for WTO Studies, warns that a continuation of the surrogate country system in anti-dumping investigations by the EU and US against China will damage the interests of all three parties in the long run and cost a huge amount in legal resources.
Xue's comments came after China notified the Secretariat on Dec 12 that it had requested the dispute consultations.