China's Anti-Trust Campaign May Violate WTO Pact, U.S. Group Says
Ren Benavidez | | Sep 09, 2014 10:15 AM EDT |
(Photo : REUTERS)
China's aggressive anti-monopoly law could violate its World Trade Organization (WTO) trade agreement as it is increasingly scrutinizing foreign companies operating on its soil, according to the United States Chamber of Commerce.
On Monday, the U.S. Chamber of Commerce said China's aggressive use of its anti-trust law was subjective and the authorities involved in the law's implementation has been unfairly favorable to local Chinese industries and companies.
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"[The biased enforcement of the law] arguably violates commitments that China undertook when it acceded to the WTO," the Chamber of Commerce said in the statement.
In addition, the statement said China will violate WTO trade rules if it continues to enforce its anti-monopoly law in a manner that opposes the WTO agreement it signed.
The U.S. Chamber of Commerce also reported that the fines and other anti-monopoly charges foreign companies are subjected to appear to be an effort "to boost local companies."
Using the law to force companies to lower its price is a violation of Article XI:1 of the General Agreement on Tariffs and Trade, which stipulates that restriction on importing goods is prohibited, the chamber said.
Companies like BMW, Volkswagen, Qualcomm, Daimler and Microsoft have been subjected to China's anti-monopoly law.
The companies experienced unannounced raids and the Chinese government fined them on grounds of violating the country's anti-trust law.
The Chinese agencies that are responsible for the enforcement of the law refused to comment on the matter.
China agreed to fair trade when it joined the organization in 2001, while its anti-monopoly law started to take effect in 2008.
TagsWorld Trade Organization, anti-monopoly law, anti-trust law
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