China has applied to the World Trade Organization (WTO) for authorization to impose trade retaliation worth about $7 billion a year against the US because the US has not taken concrete action to correct a number of illegal anti-dumping measures against Chinese products, according to a WTO document provided to members on Wednesday.
In October 2016, the WTO issued a panel report, ruling that 13 anti-dumping measures imposed by the US on Chinese exports from various industries, including machinery and electricity and light industry, violated WTO rules. The appellate Body report released in May 2017 also supported the panel's ruling. The WTO arbitrator then ruled that the US should complete the implementation of the ruling by August 22 this year.
According to the document released on November 11, China believes that the US has not implemented the rulings in the above cases within the specified time. Therefore, in accordance with the relevant provisions of the WTO dispute settlement mechanism, China has applied to the WTO for trade retaliation authorization to impose trade retaliation against the US worth 7.043 billion US dollars per year.
According to WTO rules, if the losing party fails to implement the award or recommendation within a set reasonable enforcement period, and the disputing parties fail to reach an agreement on compensation within 20 days after that reasonable period, the winning party may request the WTO Dispute Settlement Body to authorize the implementation of such measures as "suspension of concessions" (i.e., trade retaliatory measures).
According to WTO rules, if the US does not object to the extent of retaliation after China's request, the WTO Dispute Settlement Body should grant China the authorization within 30 days after the expiration of a reasonable period, that is, before September 21.
This is the first time after China's accession to the WTO that China has filed a request for trade retaliation authorization against the losing party for not implementing the ruling of the dispute settlement case.