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US files case against China at WTO
Washington, Mar 19: The United States has filed the first case against China at the World Trade Organization, contending that Beijing is using its tax code to discriminate against American semiconductor makers.
Washington, Mar 19: The United States has filed the first case against China at the World Trade Organization, contending that Beijing is using its tax code to discriminate against American semiconductor makers.
The complaint, announced by U.S. Trade Representative Robert B. Zoellick yesterday, contends that China provides preferential tax treatment to integrated computer circuits produced in China, thereby disadvantaging U.S. and other imports.
The United States believes that this "discriminatory" tax policy is inconsistent with the national treatment obligations that China assumed when it joined the WTO in December 2001.
"U.S. manufacturers of semiconductors and other products have a right to compete on a level playing field with Chinese firms," said Zoellick.
"As a WTO member, China must live up to its WTO obligations; it cannot impose measures that discriminate against U.S. products. We have been pressing these and other concerns with the Chinese. These discussions will continue because we prefer compliance rather than litigation. However, the bottom line is that China is discriminating against key U.S. technology products, it's wrong, and it's time to pursue a remedy through the WTO." China is a substantial market for U.S. semiconductor producers: U.S. exports of integrated circuits to China were $2.02 billion in 2003. U.S. exports of integrated circuits to China are subject to a 17 percent value-added tax (VAT), costing approxsimately $344 million. Bureau Report
The United States believes that this "discriminatory" tax policy is inconsistent with the national treatment obligations that China assumed when it joined the WTO in December 2001.
"U.S. manufacturers of semiconductors and other products have a right to compete on a level playing field with Chinese firms," said Zoellick.
"As a WTO member, China must live up to its WTO obligations; it cannot impose measures that discriminate against U.S. products. We have been pressing these and other concerns with the Chinese. These discussions will continue because we prefer compliance rather than litigation. However, the bottom line is that China is discriminating against key U.S. technology products, it's wrong, and it's time to pursue a remedy through the WTO." China is a substantial market for U.S. semiconductor producers: U.S. exports of integrated circuits to China were $2.02 billion in 2003. U.S. exports of integrated circuits to China are subject to a 17 percent value-added tax (VAT), costing approxsimately $344 million. Bureau Report