BBC News
Getty imagesChina has accused the United States of making “untreated and false allegations” as to its role in the fentanyl trade to justify prices on Chinese products.
The complaint was filed with the World Trade Organization (WTO) one day after US President Donald Trump increased border taxes on Chinese products by 10%, a measure which, according to him, was aimed at treating an influx illegal drugs.
In the file, China said that the measures were “discriminatory and protectionist” and violated the rules of world trade.
The dispute comes as Trump’s plans for prices – a tax he said that he wanted to see all foreign expeditions in the country – causes uncertainty in the world commercial landscape.
Trump said prices encourage companies to make their products in the United States, expressing repeated concern about the size of the trade deficit.
But his actions against China – which he threatened to expand to other countries, including Canada, Mexico and Europe – have aroused concerns about their impact on the economy, including in the United States , because companies react to commercial uncertainty by drawing investments or adopting on new costs for customers.
Sheertex, a Canadian creator, announced on Wednesday that he put 40% of his nearly 350 workers on temporary layoffs, citing pricing issues.
American imports reached their highest level in December while companies responded to prices threats, racing to secure toys, mobile phones and foreign manufacturing computers.
The value of the goods brought to the United States jumped from 4% from November to 293.1 billion dollars, the highest since the start of files in 1992, the trade department announced on Wednesday.
This increase has also contributed to the widest trade deficit, or gap, between exports and imports in almost two years.
The prices also caused political tensions, including reprisals from China, which responded to Trump’s decision with prices on American goods and an anti-monopoly survey of Google, among other measures.
The speed at which China has filed its complaint with the WTO is an indication of the preparation of Beijing for the commercial fight.
On Wednesday, Bloomberg also pointed out that the country’s anti-monopoly regulator was preparing for a possible survey on the Apple App Store policies and fees, achieving the actions of the company.
Trump movements – which included ordering an end of service treatment for parcels worth $ 800 – will be a major “shock” for certain companies, such as Shein and Temu, because they erude the possibility To offer ultra-basket prices, said Mark Williams, chief economist of China at Capital Economics.
But he said he was thinking of China overall that the effects of Trump’s prices would not be too damaging.
“For the larger Chinese economy, this is definitely manageable,” he said.
WTO procedures give the United States and China for 60 days to resolve their dispute through consultations, in which case China has the right to request the arbitration of a jury.
But we don’t know how effective it will be.
The latest Panel of the WTO that settles trade disputes remains unable to operate, as the United States refuses to approve the appointment of new judges to the body.
The United States has also ignored an anterior conclusion of the WTO that the previous prices on steel and aluminum which were imposed during Trump’s first mandate were against the rules.
Jeff Moon, who worked on the Chinese trade policy of President Barack Obama, told the BBC that he expected an initial WTO decision to support China’s position.
These cases generally take years to resolve, however, and because the call process has been paralyzed, “a final decision will never be published”.
The former assistant representative of the American trade for Chinese affairs added that Beijing had to file the case to support its position frequently stated that it is the United States which undermines the rules based on the rules and the relationship between the two country.
China ranked as the county with the largest freight deficit in December, sending $ 25.3 billion more to the United States it has bought.
The European Union, a target target target of Trump, had the second largest gap.
On the other hand, the United States has experienced a small surplus of $ 2.3 billion in the trade in the United Kingdom.
Overall, the trade deficit in the United States, including services, increased by 17% last year to reach a total of $ 918.4 billion, as imports increased more quickly than exports.
In December, the trade deficit of goods and services was $ 98.4 billion, the highest since March 2022, said the Commerce Department.
