China has demanded an annual $ 7 billion trade sanction on US assets
New chapter in the tariff war between China and the USA. The Asian country, in fact, has requested authorization from the World Trade Organization (WTO) to impose a $ 7 billion annual trade sanction on US assets. The request stems from the lack of respect for the US for a decision by the WTO.
The request stems from a failure to comply with the US on a law of the same WTO
The explanation of the current situation, challenged by China, is in a document circulated to all the members of the WTO, which specifies how China requires authorization, from the WTO dispute settlement body (DSB) , to “suspend concessions or other obligations” to the United States “at a level equivalent to the annulment or deterioration suffered”.
This level of cancellation or deterioration would amount to about $ 7.043 billion per year.
Already in 2016 the WTO had recognized US irregularities in anti-dumping proceedings
In 2016, the WTO recognised China’s victory in a dispute over some methodologies applied by the United States during its anti-dumping proceedings. The sentence was subsequently confirmed on appeal last year.
However, China believes that “no substantial effort and progress has been made” by the United States to fulfill its obligation to implement.
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