China files complaint with WTO against US over 'discriminatory' tariffs
What's the story
China has filed a complaint with the World Trade Organization (WTO) against the United States, calling President Donald Trump's recent tariffs on Chinese goods "discriminatory."
The US had recently imposed a 10% border tax on Chinese imports, a move Trump defended as a means to curb illegal drug trafficking.
China has rejected these claims as "unfounded and false."
Countermeasures
China retaliates with tariffs on US goods
In retaliation to the US tariffs, China has announced a 15% tariff on American coal and liquefied natural gas (LNG), effective from February 9.
The Chinese finance ministry also plans to impose a 10% tariff on other US goods, including crude oil and farm equipment.
These measures are described as a response to the US's "unilateral tariff hike."
Market impact
Trade dispute impacts global markets, US companies under scrutiny
The intensifying trade dispute has sent ripples across global markets, causing currency values and stock indices to fluctuate.
While the dollar strengthened against major currencies, the Chinese yuan weakened.
US equity futures fell and Indian benchmarks Sensex and Nifty lost ground after China's counter-tariff announcement.
Apart from these economic measures, China is also investigating Google for alleged anti-trust violations and other US companies like PVH Corp and Illumina.
Dispute resolution
WTO's ability to resolve dispute uncertain
The WTO's ability to settle this dispute remains unclear.
A former WTO official told BBC that China has "no possibility of succeeding" as the panel of WTO that deals with trade disputes continues to remain non-functional.
WTO protocols permit the United States and China 60 days to resolve their disagreement through discussions, after which China can request adjudication by a panel of judges.