China’s First Victory in the Fastener Trade War.docVIP

China’s First Victory in the Fastener Trade War 　　ON July 15, the appellate body of the World Trade Organization (WTO) ruled in favor of China in its case alleging that the Europe- an Union (EU) is illegally txing steel fasteners of allsizes needed for everything from furniture to cars to bridges. This is the firsttime China has won a lawsuit against the EU on a trade dispute. 　　Chinas Ministry of Commerce (MOC) welcomed the WTO ruling:It isof great significance and will help Chinese enterprises enjoy better competi-tive conditions in the whole international market, including the EU, says anunidentified official in the MOC Treaty and Law Department. The ruling hasreinforced the confidence of WTO members in the WTO rules and the multi-lateral trading system. This is not only a victory for Chinese industry but forthe WTO rules as well, the official says. 　　 　　Breaking up a DiscriminatoryMarriage 　　 　　China is the worlds largest makerof carbon sLeel fastener pieces, such asscrews, nuts and bolts. The EU is oneof the worlds biggest markets for thepieces. 　　According to Wang Lei, partner ofGaopeng Partners - PRC Lawyerswho participated in the entire process ofthe case, the greatest significance of thecase is that the EU must amend its Anti-dumping Basic Regulation on separatetax rates, which was enforced in 1996,especially Section 9 (5), otherwise theEU will encounter Chinas trade repri-sal, one authorized by the WTO. 　　The EU is the WTO member thathas launched the most anti-dumpinginvestigations into Chinese products.Section 9 (5) has resulted in Chineseenterprises sustaining unfair treatmentfor a long period of time, and the coreof this trade war lies in that section. Ac-cording to WTO rules, since the pricesof export commodities are different, allenterprises involved in anti-dumpingappeals should be charged a separate.tax rate. 　　However, by identifying China as anon-market economy, the EU has col-lected heavy anti-dumping duties fromChinese enterprises