The United States has accused Beijing of bias treatment against foreign-manufactured aircrafts. The People's Republic has allegedly violated international trading laws, and the American government will be bringing the trade dispute case to the World Trade Organization.

The Obama administration claims that Chinese-made aircrafts are exempted from the 17 percent value added taxes. US News reports that among the imports affected are aviation airplanes run by propellers, business planes and aircraft with regional routes. While one of the locally manufactured planes that gained benefit is the state-owned Commercial Aircraft Corp. of China's ARJ21.  

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The trade representative of the United States expressed that the tax, which is largely instituted on airplanes weighing less than 25 tons, "is discriminatory, unfair and harmful to US workers and businesses of all sizes in the critical aviation industry."

"The Chinese government is undermining fair competition and playing by their own set of rules. Punishing American small and medium-sized aircraft and aircraft component manufacturers is a direct violation of WTO commitments," Congressman Pat Tiberi said.

However, Forman expressed concern that "China attempted to hide this discriminatory tax policy. Transparency of laws and regulations impacting trade is a core WTO commitment that China must uphold, just as it expects other countries to do... For these reasons, the United States is filing a trade enforcement case to hold China accountable." 

The United States is now asking that China is consulted on the matter, the initial step that would allow the WTO to determine a panel to deside the case. 

Several officials and establishments have already complained about trade loss with China. In fact, the US government won two cases -- the first one is adding extra toll on vehicles and the second is requiring tariff and quotas on rare earth materials utilized by high-tech devices.

However, Chinese ambassador Zhu Haiquan in Washington said that "China is firmly committed to the WTO rules and regulations" and hoped that "the trade disputes can be properly dealth with under WTO dispute settlement mechanism."

Trade committee chairman of the US House of Representative Dave Reichert said that "the success of our our global trading system depends on transparency and strong enforcement. Each partnering country must play by the same rules." 

TagsUS, imports, trade dispute, US-China trade dispute, World Trade Organization