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China regrets EU's complaint over auto parts

Updated: 2006-04-03 10:05
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China's Ministry of Commerce has expressed regrets on the European Union (EU)'s plan to file a WTO complaint against China over auto parts.

The ministry posted Friday on its official website the statement of its spokesman, Cong Quan, on this issue. Cong claimed that China is seriously considering the request for dispute settlement consultations from the EU and US on auto parts.

On March 30 in Brussels, WTO commissioners of the EU and the United States sent their requests to China's WTO commissioner Sun Zhenyu, seeking WTO talks with China on car parts tariffs.

The EU complained that some of China's rules on car import tariffs are not in accord with WTO rules putting European car manufacturers at a disadvantage compared to local producers.

China claimed that these measures are aimed at curbing tax evasion by some foreign auto manufactures, saying that some of them disassemble their cars before importing and then reassemble them in China thereby avoiding customs payments on importing whole cars.

Under WTO rules, if a resolution is not found over 60 days, then the EU and China can ask a WTO panel to rule on the dispute.