China responds to criticism from U.S. at WTO

China rejected criticism from U.S. in the review of its trade policy in the World Trade Organization (WTO) and took the opportunity to suggest that many of Washington’s accusations were not only groundless, but also hypocritical.
 
The U.S. ambassador to the WTO, Michael Punke, expressed a wide range of criticism during the Trade Policy Review. In response, China rejected much of his criticism, including complaints about subsidies, lack of transparency and actions to enforce intellectual property rights.
 
The Assistant Minister of Commerce of China, Yu Jianhua (俞建华), said he regretted that during the review process of the WTO, some members have argued that Beijing was exercising state capitalism.
 
“The term can not be found in WTO documents. It has nothing to do with the review or the WTO. We firmly believe that the review should not be used for political purposes,” he said.

The demand of U.S. for more transparency was ignored. China said the transparency commitments cited by Washington were outside the jurisdiction of the WTO.

In response to a U.S. complaint about Chinese farmers had an unfair advantage over importers, because they have to pay value added taxes if they sell directly to consumers, China said other countries did the same.

The representative also noted that the policies only allow small-scale exemptions for “farmers who sell their own products such as one kilo of potatoes in an outdoor market,” and the VAT would be impossible to apply.