The Chinese government is studying an interim report from the World Trade Organization on some countries complaints about China's tax measures on imports of auto parts.
The report issued earlier this week is the first official condemnation of Chinese commercial practices since China joined the organisation in 2001.
It largely upholds European Union, United States, and Canadian complaints that the tax on imported auto parts violates WTO rules.
China considers auto parts as a whole vehicle if they account for 60 percent or more of the value of a final vehicle, and it charges a higher tariff on them.
Zhou Shijian is expert from the China Institute for WTO Studies.
"I think WTO's finding is not fair. Now, the import tariff for a whole vehicle is 25 percent, and the import tariff for auto parts is 10 percent. If you only import auto parts, you won't be affected as much."
Zhou added China should use the rules and regulations of the WTO to protect its own interests. Some Chinese fear the interim ruling may make cars more expensive.
But Jia Xinguang, a senior analyst of China's car market, says any increase is unlikely.
"It might have some impact on the price of high-end imported cars. If those cars can be manufactured in China, the price will drop."
The final WTO report on the dispute is expected next month. |
