After the imposition of a new set of tariffs on billions of dollars worth of Chinese imports, China has now lodged a formal complaint against the United States with the World Trade Organization (WTO). China's Commerce Ministry made the announcement on Monday, stating that the imposed tariffs were a violation of the consensus reached by both countries.

In a sudden escalation of the trade dispute between two of the largest economies in the world, the United States imposed a 15 percent tariff on a wide variety of Chinese imports. The tariffs were imposed on Sunday, immediately resulting in a response from China. Shortly after the US slapped the tariffs, China announced that it would be imposing new levies on all US crude oil imports.

China's Commerce Ministry did not immediately reveal any details regarding its legal case against the United States. However, the agency did mention that it involved all of the tariffs imposed so far, which affects more than $300 billion worth of the country's exports to the United States.

According to Commerce Ministry officials, the latest round of tariffs was a violation of what was agreed upon by US President Donald Trump and Chinese President Xi Jinping during their meeting at the recently held G20 summit in Osaka, Japan. It was also explained that China will be defending its legal rights in accordance with existing WTO rules and regulations.

The new complaint filed with the WTO will be the third lawsuit launched by China against the United States. The WTO is an intergovernmental organization in charge of regulating and limiting the tariffs that countries impose on each other.

In response to China's actions, US officials stated that the tariffs were imposed to punish the country for its theft of US intellectual properties. Officials explained that such violations are not covered by WTO rules, which is why the administration had decided on its own course of action.

However, trade experts have argued that tariff hikes above the WTO's allowed maximum limits should still be addressed. The same experts have also stated that China's move to impose its own tariffs will only worsen its situation. China's sudden decision to fight fire with fire by imposing tariffs on US crude was also a violation of WTO regulations as it did not seek prior approval.

In a published written defense released by the United States, it was explained that both China and the US had agreed to not involve the WTO in their dispute. The statement also mentioned that US' tariff measures are meant to eliminate China's "unfair and distortive" intellectual rights policies. 

Source: Business Times

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