United States should throw China out of the WTO: Peter Morici


United States should throw China out of the WTO: Peter Morici

China and the United States are expected to launch a potentially damaging trade war, but Beijing could hit its rival with tariffs first.

Chinese state media on Wednesday kept up a steady drum beat of criticism of the United States. "The request was circulated to WTO members on 2 July", the press service said.

China's yuan rose sharply against the dollar on Wednesday, a day after the central bank assured markets it would keep the currency stable amid growing worries about trade friction, although stocks fell. This is the seventh complaint initiated by WTO members against U.S. duties on steel and aluminum.

Amid a separate U.S. dispute with China over intellectual property and in the wake of news reports that Mr Trump has considered withdrawing from the WTO, Mr Tusk stressed an agreement by the EU's national leaders last week to press for improvements in the way the Geneva-based global trade arbiter operates.

The United States introduced higher import duties on steel and aluminum products on March 23 of this year.

Earlier, Chinese Foreign Ministry spokesman Lu Kang said China was ready to act, though he did not confirm the start date for Chinese tariffs.

The Trump administration has drafted legislation that would allow the U.S.to ditch World Trade Organization rules and give President Donald Trump tighter control over USA trade policy, according to Axios, which published the leaked draft. "Now it is attempting to resort to an all-out trade and economic war to hold back China's normal development".

One proposal has been for China and the European Union to launch joint action against the USA at the World Trade Organisation.

The Commerce Department launched its investigation, on grounds of national security, on 23 May under orders from Trump, who has frequently complained about the EU's 10% auto tariff being four times that of the United States, apart from the 25% USA levy on pickup trucks. With Mr Trump threatening to deploy the national-security argument to introduce United States tariffs on cars and auto parts, the bloc has also vowed a firm stance on any United States automotive duties.

European envoys say they already sensed a greater urgency from China in 2017 to find like-minded countries willing to stand up against Trump's "America First" policies.



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