China recently appealed against the results of the decision of the World Trade Organization Panel on the EU, the United States, and Canada in suing China's auto parts import management measures, requesting the WTO Appellate Body to review the case and make an impartial ruling. “The opinion of the WTO expert group will seldom change, and China has little chance of obtaining a reversal through appeal. China’s current practice is also to express its attitude and win more time for the domestic industry.†Experts interviewed by reporters from the China Economic Times It is widely believed that the key is that China should adopt this case to speed up its familiarity with international game rules and accelerate domestic industrial transformation and upgrading. There is little chance of a reversal The Expert Group of the Dispute Settlement Agency of the World Trade Organization announced on July 18 the ruling on the dispute between China and the United States, the European Union and Canada on the dispute between auto parts. According to the report, China’s taxation of imported vehicles by more than 60% of imported parts and components constitutes discrimination against imported auto parts and therefore violates relevant trade rules. This is the first time China has lost the trade dispute since it joined the WTO. According to relevant rules of the WTO, China may decide whether to appeal within 60 days from the date of publication of the report of the expert group. The time limit for trials of the WTO Appellate Body is generally 60 days, with a maximum of 90 days. The Appellate Body may maintain, modify or overrule the legal findings and results of the panel of experts. China has gone through the final procedure within the stipulated time and then waits for the final decision of the appellate body. Dr. Cao Jianhai, director of the Investment and Market Research Office of the Institute of Industrial Economics at the Chinese Academy of Social Sciences, believes that dissatisfaction with the judgment of the expert group and appeal in accordance with the WTO dispute settlement procedures is an international practice. This can delay time and provide more space for growth for the Chinese automobile industry. But what is more important is to show the positive attitude of coping and change the fear of the developed countries’ evasiveness over our trade disputes. Lawyer Fu Donghui said that although this is the first time China has lost the trade dispute since its accession to the WTO, it has had little impact on the entire industry and the market. However, it is worth paying attention to how the Chinese government will deal with similar issues in the future. This is an opportunity to show how to better integrate into the WTO and accelerate our familiarity with international rules of the game. This "training" helps officials to further control the WTO rules and better serve the national interests. This has already surpassed a trade dispute itself. Industrial development should not be blocked In the early days, the technique of market swapping caused the market to give up a lot. During the "Eleventh Five-Year Plan" period, the government proposed the goal of "ownership brands gain more than 50% market share," but it is easier said than done to pick up the market again. In addition to the "Administrative Measures for the Import of Auto Parts and Components That Constitute the Characteristics of the Vehicle," there seems to be no better way. Cao Jianhai believes that the "Administrative Measures" is only a threshold-type, "blocking" response. After the final ruling of the WTO, the policy orientation of China's auto industry development should shift from preventing the impact and penetration of multinational companies on the parts and components industry to how to better cultivate and improve the overall innovation capability and sustainable development capability of domestic auto parts enterprises. While supporting the development of self-owned brand vehicle companies in China, there should also be specific policy ideas for supporting local auto parts companies. However, China's auto parts industry is currently operating bleak, lack of research and development capabilities, can not get a share in the huge car market. Specific suggestions include government procurement to domestic brands, support for products with high localization rates, certain tax incentives for domestic parts and components companies, investment in R&D, etc. Of course, the premise is not to violate the WTO rules. Under the same import tax, why wouldn't importers disperse imports and assemble and sell to escape the vehicle tax in other countries? Cao Jianhai believes that its roots lie in China’s investment promotion policy, and the cost of foreign capital to China is very low. Land is basically cheap, labor is cheap, and special tax concessions are also enjoyed. Therefore, it is more cost-effective to disperse imported auto parts at a low tax rate and then assemble and sell them in China, which is much higher than the high tax rate of imported vehicles. At the corporate level, the attitude toward localization has now shifted from the passive to the active. All European and American joint-venture car companies are moving closer to the 40% localization goal, which shows that the market is still the best means of adjustment. There are also comments that the ruling will ultimately only benefit China. China's domestic auto manufacturing industry will increase efficiency, promote a leaner industrial structure, and increase exports. On the other hand, the increase in China's imports of auto parts will help reduce the trade imbalance between China and the United States, the European Union and other markets. Jump Starter,Portable Power Bank,Jump Start Battery,Power Bank Shenzhen High Railway Technology Co., Ltd , https://www.hrw-tech.com
Parts Tariff Disputes Appeal for Industry to Win Time