China states 'regret' over WTO tariff move

China has voiced regret that the European Union and the United States had turned to the World Trade Organization (WTO) to try…

China has voiced regret that the European Union and the United States had turned to the World Trade Organization (WTO) to try to open the country's $19 billion car parts market to more imports.

The United States and European Union have accused China of imposing illegal tariffs to prevent foreign components being imported for use in Chinese car assembly plants.

It is the first time the EU's executive commission has taken China to the WTO since Beijing joined the trade watchdog in 2001. It is the second case Washington has brought against Beijing.

"The Chinese side expresses regret over this and is earnestly studying the request for consultations by the EU and the United States," a statement on the Ministry of Commerce's website quoted a spokesman as saying.

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Brussels and Washington want Beijing to change certain tariff policies they say hinder Western auto makers and car parts suppliers in China, now one of the world's biggest auto markets.

China has 10 days to respond to the request and must start consultations within 30 days. If the issue cannot be resolved within a further 60 days, the EU and the United States may request a WTO panel to hear and rule on the dispute.

The EU and United States have long complained about a lack of access in general to China 's fast-growing markets as well as piracy and counterfeiting of Western goods.

They have also accused China of unfairly helping its exporters. Brussels is due to start applying anti-dumping tariffs on Chinese leather shoes next week, and Washington says China deliberately holds down the value of the yuan.