WTO to China: Put the brakes on

Stephen Beard Feb 14, 2008
HTML EMBED:
COPY

WTO to China: Put the brakes on

Stephen Beard Feb 14, 2008
HTML EMBED:
COPY

TEXT OF STORY

Doug Krizner: China has suffered its first defeat at the World Trade Organization. We have more from Stephen Beard.


Stephen Beard: The dispute with China is over auto-parts — like batteries, brakes and spark plugs. China’s been charging higher tariffs on imports of these goods from the U.S., Canada and the E.U.

In effect, the Chinese have favored car component makers based in their own country. In an interim ruling, the World Trade Organization has condemned this as protectionist.

Gareth Leather, of the Economist Intelligence Unit, says this decision could be a breakthrough for Western car makers:

Gareth Leather: China’s now the second-largest car market in the world after the U.S. So obviously, car makers from around the world are trying to enter this market. And this ruling, depending on what happens, should allow them easier access to China

But WTO disputes tend to rumble on for years. China is thought likely to appeal the ruling. It still could be some time before the Chinese are forced to open up their car market to global competition.

In London, this is Stephen Beard for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.