China files lawsuit at WTO over US tariffs

Reuters reported on February 6 that China has officially filed a lawsuit with the World Trade Organization (WTO) over the tariffs imposed by US President Donald Trump on Chinese goods.

In a statement cited by the WTO, China said the measures appeared inconsistent with the US's obligations under the agreement that led to the establishment of the trade body, pointing to the discriminatory nature of the US tariffs.

"China reserves the right to take additional measures and make complaints regarding the issues identified here, during the consultations and in any future requests for the establishment of a panel," China's statement said, without detailing the measures involved.

On February 1, Mr. Trump announced tariffs on goods from Mexico, Canada, and China, forcing them to stop the flow of the addictive drug fentanyl, as well as forcing Mexico and Canada to stop the flow of illegal immigrants into the U.S. He later postponed tariffs on the two North American countries, but imposed them on China.

Mr Trump plans to impose a 10% tariff on goods from China. Beijing then announced it would file a complaint with the WTO.

Since December 2019, the WTO’s dispute settlement system has been paralyzed by the collapse of the Appellate Body, which has the final say in disputes. The first Trump administration and then former President Joe Biden blocked the appointment of new judges to the Appellate Body, arguing that there was an overreach of judicial power in the disputes. The body cannot function without three judges.