China violates global trade rules by requiring automakers operating there to buy components from local suppliers or face penalties, the World Trade Organization ruled on Friday.
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The decision, issued in Geneva on a complaint brought by the European Union, the United States and Canada, is the first time China has lost a case since it joined the global trade arbiter in 2001
Note this is the first time China has lost.
Now read the last line in the article:
In April 2005, China began a system of levying tariffs on auto parts based on the amount of imports in the complete vehicle. Automakers must register with Chinese authorities and provide detailed information on the quantity and value of foreign parts used in their vehicles.
If a threshold of foreign parts is reached, those parts are subject to the 25 percent tariff that applies to complete vehicles instead of the 10 percent tariff applied to parts.
In other words, China has a 25% tariff on autos into their country! Want to know the tariff for China to import autos into the US? 2%. Probably the biggest oxymoron of this century is to call the WTO and these trade agreements free.