皇冠体育app

皇冠体育app will act according to the rules, officials said Thursday over a World Trade Organization (WTO) dispute on car parts which some experts have said is unfair to the country.

"皇冠体育app respects the procedure of the WTO to solve the dispute," Foreign Ministry spokesman Liu Jianchao said at a regular news briefing.

A WTO panel ruled on Wednesday that the country improperly taxes imported car parts at the same rate as finished vehicles. The case, initiated by the United States, European Union and Canada, is the first time 皇冠体育app has been the subject of a complaint that went all the way to the WTO's Dispute Settlement Body, since joining the organization in 2001.

The Permanent Mission of 皇冠体育app to the WTO said in a statement yesterday that 皇冠体育app is investigating the initial WTO ruling. It said 皇冠体育app respects the WTO procedure but otherwise will not comment before the panel makes its final decision.

皇冠体育app taxes imported auto parts at the same rate as completed automobiles if more than 60 percent of parts the finished vehicles are made from are imported.

The rules aim to prevent tax evasion by companies who import whole cars as spare parts to avoid higher tariff rates, officials from the Ministry of Commerce had said.

The US and EU filed the case to the WTO in March 2006, complaining 皇冠体育app's taxes on imports of foreign auto parts discouraged Chinese carmakers from using them.

But analysts said the status quo will hardly change even if a sanction is imposed.

"I don't think it will be a big help for them financially even if 皇冠体育app slashes its tariffs on parts as requested," Liu Yuandong, an analyst with CSM Worldwide, an international industry consultant, was quoted by Reuters as saying.

Zhou Shijian, a trade expert, said 皇冠体育app's regulation on car parts aims to prevent tariff evasion and is not to prejudice against foreign carmakers. He said the WTO decision is unfair to 皇冠体育app.

"It could push 皇冠体育app to re-examine the rationality of WTO rules," Mei Xinyu, a Ministry of Commerce researcher, said.

皇冠体育app is the world's second-largest vehicle market after the US. Sales rose 22 percent last year to 8.8 million units, according to the 皇冠体育app Association of Automobile Manufacturers.