China confirms appealing WTO auto parts ruling

Shanghai, September 16 (Gasgoo.com) The Ministry of Commerce confirmed it is appealing the World Trade Organization ruling against China's auto parts import tariff regime on Monday.

"China cannot completely agree with the Dispute Settlement Body (DSB)'s report and ruling after careful investigation, and it is looking forward to a fair ruling from the panel this time,” the ministry said on its official website.

DSB has between 60 and 90 days to come up with a new report following China's appeal. However, AFP cited EU trade commission spokesman Peter Power as saying that while China had this final right to appeal, he was confident the original verdict would stick.

Industry analysts say it’s necessary for China to launch an appeal in accordance with international trade rules. On the one hand it will win a precious period of time for domestic companies to continuously improve themselves to meet upcoming challenges, and on the other it showcases Chinese government's positive and steadfast attitude in dealing with trade disputes.

The WTO rules on July 18 that China's trade practices of taxing imports of auto parts at the same rate as imports of finished cars if the value of imported parts in the assembled vehicle exceeds 60 percent are illegal, siding with the United States, the European Union and Canada in the case.

As previously reported by Gasgoo.com, the final result of the ruling won't have a big impact on China's auto industry, as the industry has already benefited a lot from the government's existing regulations. The urgent task for China now is to take measures to help local carmakers and auto parts suppliers promote their innovation ability and competitive strength.