WASHINGTON-China, already facing mounting U.S. criticism over its Wi-Fi security standard, said it will consult with U.S. officials on a separate dispute before the World Trade Organization in which the Bush administration has accused Beijing of erecting barriers to imports of semiconductors manufactured in America.
China’s message requesting talks with the Bush administration was sent to a U.S. aide via the Chinese delegation to the WTO, the Chinese Ministry of Commerce said late last week.
The two sides will decide the detailed arrangements of the consultation after negotiation, Chinese officials said.
The United States claims China’s tax policy on chips discriminates against U.S. high-tech firms.
China levies a 17-percent value-added tax on imported chips. Domestic producers also are subject to the tax but qualify for rebates of up to 14 percent.
China and the United States will have 60 days for consultation and, under WTO rules, a further dispute settlement procedure will be launched if the two sides fail to reach an agreement within the 60-day time limit.
The trade fight over China’s proprietary Wi-Fi security standard is expected to spill over into a U.S.-China trade meeting here April 21.
Meantime, the U.S. Trade Representative is expected to slam South Korea over various wireless standards in an upcoming report.
