China files WTO challenge to US tariffs on solar panels

The 30 percent tariffs announced in January improperly help US producers in violation of WTO rules, China’s commerce ministry said. (Reuters)
Updated 15 August 2018
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China files WTO challenge to US tariffs on solar panels

  • The 30 percent tariffs announced in January improperly help US producers in violation of WTO rules, China’s commerce ministry said
  • China has tried to portray itself as a defender of the WTO-based trading system

BEIJING: China says it is challenging a US tariff hike on solar panels before the World Trade Organization, adding to its sprawling conflicts with President Donald Trump over trade and technology.
The 30 percent tariffs announced in January improperly help US producers in violation of WTO rules, the Commerce Ministry said. It said a formal complaint was filed Tuesday with the WTO in Geneva.
The solar duties are separate from tariff hikes imposed by the Trump administration starting in July on Chinese imports in response to complaints Beijing steals or pressures companies to hand over technology.
The duties also apply to imports of solar cells and modules from Europe, Canada, Mexico and South Korea. That strained relations with US allies.
The Trump administration has defended the solar tariffs as necessary to protect American producers, saying import prices were unfairly low due to subsidies and other improper support.
Washington took action under a 1974 US law instead of through the WTO. That led to complaints it was undermining the global trade body. US officials say such action is necessary because the WTO lacks the ability to address Chinese trade tactics.
China has tried to portray itself as a defender of the WTO-based trading system. It has attempted to recruit European and other governments as allies against Washington, but they echo US complaints about Chinese market barriers and industrial policy.
The European Union filed its own WTO complaint in June against Chinese technology policies it said violate Beijing’s free-trade commitments.
The US solar action “seriously damaged China’s trade interests” and “also affects the seriousness and authority of WTO rules,” said a Commerce Ministry statement.
WTO complaints begin with negotiations between parties to the dispute. If those fail, the case moves to a panel of experts who can decide whether the trade controls are improper.
In their technology dispute, Washington imposed 25 percent duties on $34 billion of Chinese goods it said benefit from improper industrial policies. Beijing responded with similar penalties.
Another round of US tariff hikes on $16 billion of Chinese goods is due to take effect Aug. 23. Beijing says it will retaliate.
Earlier, Beijing filed a separate WTO challenge on July 16 to Trump’s proposal for yet another round of increases that would add 25 percent import duties on an additional $200 billion of Chinese goods.


Bahrain to use Huawei in 5G rollout despite US warnings

Updated 26 March 2019
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Bahrain to use Huawei in 5G rollout despite US warnings

  • Washington has warned countries against using Chinese technology
  • ‘We have no concern at this stage as long as this technology is meeting our standards’

DUBAI: Bahrain plans to roll out a commercial 5G mobile network by June, partly using Huawei technology despite the United States’ concerns the Chinese telecom giant’s equipment could be used for spying.
Washington has warned countries against using Chinese technology, saying Huawei could be used by Beijing to spy on the West. China and Huawei have strongly rejected the allegations.
VIVA Bahrain, a subsidiary of Saudi Arabian state-controlled telecoms firm STC, last month signed an agreement to use Huawei products in its 5G network, one of several Gulf telecoms companies working with the Chinese company.
“We have no concern at this stage as long as this technology is meeting our standards,” Bahrain’s Telecommunications Minister Kamal bin Ahmed Mohammed told Reuters on Tuesday when asked about US concerns over Huawei technology.
A senior State Department official said the US routinely urges allies and partners to consider the risks posed by vendors subject to extrajudicial or unchecked compulsion by foreign states.
The US Fifth Fleet uses its base in Bahrain, a Western-allied island state off the Saudi coast, to patrol several important shipping lanes, including near Iran.
Bahrain expects to be one of the first countries to make 5G available nationwide, Mohammed said, although he cautioned it would depend on handset and equipment availability.
Early movers like the United States, China, Japan and South Korea are just starting to roll out their 5G networks, but other regions, such as Europe, are still years away and the first 5G phones are only likely to be released in the second half of this year.
Bahrain’s state-controlled operator Batelco is working with Sweden’s Ericsson on its 5G network, while the country’s third telecoms group Zain Bahrain is yet to announce a technology provider.
No foreign company is restricted by the government from providing equipment for Bahrain’s 5G network, Mohammed said, adding mobile operators choose who they work with.
Australia and New Zealand have stopped operators using Huawei equipment in their networks but the European Union is expected to ignore US calls to ban the Chinese company, instead urging countries to share more data to tackle cybersecurity risks related to 5G networks.
Mohammed said the rollout of the 5G network was an “important milestone” for Bahrain, which is hoping investments in technology will help spur its economy, which was hit hard by a recent drop in oil prices.
“It is something we are proud to have,” he said.