China Files WTO Complaint Against US, Potentially Complicating Trade Talks

In a move that isn’t likely to improve Donald Trump’s mood towards Beijing as the fate of September trade talks hangs precariously in the balance, China is filing a WTO complaint against the US.

China didn’t release the details of its legal case, but the decision appears to be tied to the latest round of tariffs, originally announced via tweet on August 1.

“China will firmly safeguard its legitimate rights and interests, and defend the multilateral trading system in accordance with relevant WTO rules”, the Ministry of Commerce said in a statement on Monday, less than 12 hours after reports indicated the two sides are struggling to come to terms on scheduling September discussions.

Read more: Trump ‘More Receptive’ To Going ‘Well Beyond Trade’ In China Fight

The latest levies, on $300 billion in Chinese goods, were split into two tranches on August 13, with $112 billion in products subject to 10% duties on September 1, and another $160 billion targeted on December 15. The 10% rate was ratcheted higher to 15% on August 23 following the announcement of retaliatory duties by Beijing.

Trump is no fan of the WTO, and the institution has endured repeated criticism for being ineffectual when it comes to China’s exploitative trade practices.

Whether or not this counts as an “escalation” is anyone’s guess, but Trump will surely let everyone know as soon as he’s done marveling at the size of the hurricane that’s menacing the US coastline.

As Reuters notes, the US on Friday published a written defense in the first of three legal cases brought by China against Trump’s tariffs. The administration claims China and the US “agreed the issue should not be judged at the WTO”.

“China has taken the unilateral decision to adopt aggressive industrial policy measures to steal or otherwise unfairly acquire the technology of its trading partners; the United States has adopted tariff measures to try to obtain the elimination of China’s unfair and distortive technology-transfer policies”, the defense says.