China will request permission from the World Trade Organization to impose sanctions on the U.S. due to Washington’s non-compliance with a recent ruling over U.S. dumping duties.
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China initiated a dispute in 2013, against America’s application of up to $8.4 billion worth of duties on several industries. As reported by Reuters, China won a WTO ruling in 2016 that was confirmed by an appeal last year, and China says the U.S. has been non-complaint with this ruling.
Now, China wants to impose $7 billion a year in sanctions on the U.S in retaliation. According to China, the U.S. had until Aug. 22 to comply.
The case involved how the U.S. Commerce Department calculated the amount of dumping. Dumping refers when a country underprices exports so that they can undercut domestically produced goods. The complaint accused the U.S. of using a calculation method, known as “zeroing,” which tended to increase to level of U.S. ant-dumping duties on foreign producers.
The calculation method was repeatedly ruled illegal in a series of trade disputes brought to the WTO.
Meanwhile, in August, President Trump told Bloomberg that the U.S. could withdraw from the WTO if “they don’t shape up.”