Since the Obama administration decided to impose safeguard tariffs on Chinese tires, China has announced two things:
China has requested WTO-sanctioned consultations with the United States over Washington's new duties on Chinese-made tires, a spokesman for China's Commerce Ministry said.
2. AD/CVD actions:
China announced dumping and subsidy probes of chicken and auto products from the U.S., two days after President Barack Obama imposed tariffs on tires from the Asian nation.
On the first one, I don't know what the chances of China succeeding on the merits are, but nevertheless I think that it makes sense for China to send a message thay any country who takes these actions is going to have spend resources defending them at the WTO.
As to the second, well, the connection between this and the Tires decision is a bit unclear, although the timing certainly seems to link them. If there is a link, it looks like we are moving towards an old style "trade war," which is not good. Could DSU Article 23.1 be of any help here:
When Members seek the redress of a violation of obligations or other nullification or
impairment of benefits under the covered agreements or an impediment to the attainment of any objective of the covered agreements, they shall have recourse to, and abide by, the rules and procedures of this Understanding.
Perhaps. On the other hand, China could argue that, even if the AD/CVD actions were in reaction to the Tires decision, it was not concerned with a WTO violation/nullification or impairment of benefits, but rather the economic impact of the decision.
