China seeks $2.4 billion in penalties against US at WTO

Friday, October 18, 2019, Vol. 43, No. 42

BERLIN (AP) — China is asking the World Trade Organization for the right to impose $2.4 billion in annual penalties on the United States in a case over Chinese subsidies dating back years.

A document published Monday showed China has called for the matter to be considered by the WTO's Dispute Settlement Body next Monday. The matter would be referred to a WTO arbitrator if the U.S. objects to the amount China proposes.

The request stems from a July WTO appellate decision in a case dating to before the Trump administration, and unrelated to the tariffs it has slapped on Chinese goods.

Washington criticized that decision, which it said recognizes that China uses state-owned enterprises to subsidize and distort its economy but contends the U.S. must use "distorted Chinese prices" to measure subsidies.