China: Car Parts and a WTO Ruling

The World Trade Organization issued its first ruling against China on Feb. 13, in a dispute launched by the United States, the European Union and Canada over Beijing’s unfair tax treatment for imported foreign car parts. China will fight for this case to be reviewed via the system but will not kick up too great a fuss over what is a nonstrategic item. In fact, the ruling will most likely play to China’s benefit.