WT/DS565/1  
G/L/1260  
 
27 August 2018  
(18-5348) Page: 1/2 
  Original: English  
 
UNITED STATES – TARIFF MEASURES ON C ERTAIN GOODS FROM CH INA II  
REQUEST FOR CONSULTA TIONS BY CHINA  
The following communication, dated 23 August 2018 , from the delegation of China  to the 
delegation of the United States , is circulated to the Dispute Settlement Body in accordance with 
Article  4.4 of the DSU.  
 
_______________  
 
 
My authorities have instructed me to request consultations with the Government of the United 
States pursuant to Article 4 of the Understanding on Rules and Procedures Governing t he 
Settlement of Disputes (DSU), Article XXII I of the General Agreement on Tariffs and Trade 1994  
(GATT 1994 ) concerning the tariffs measures that the United States accords to certain goods with 
the estimated trade value of approximately $ 16 billion origin ating from China.  
The United States  published the Notice of Action Pursuant to Section 301: China 's Acts, Policies, 
and Practices Related to Technology Transfer, Intellectual Property, and Innovation 1 in the Federal 
Register dated 16 August, according to  which an additional ad valorem duty of 25 percent has 
been imposed on  the importing products of Chinese origin  since 23 August, 2018 .  The additional 
duty is only applied to China 's products and in excess of the United States 's bound rates in its 
Schedule of Concessions  and Commitments annexed to the GATT 1994.  
The legal documents through which the United States implements the additional  tariff measures 
include : 
1. Section 301 -310 of the Trade Act of 1974, as amended (19 U.S.C., pa ragraphs 2411 -
2420).  
2. Findings of the investigation into  China 's acts, policies and practices related to technology 
transfer, intellectual property and innovation under Section  301 of the Trade Act of 1974.2  
3. Actions by the United States Related to the Section 301 Investigation of China 's Laws, 
Policies, Practices, or Actions Related to Technology Transfer, Intellectual Property, and 
Innovation.3 
4. Notice of Action and Request for Public Comment Concerning Proposed Determination of 
Action Pursuant to Secti on 301: China 's Acts, Policies, and Practices Related to Technology 
Transfer, Intellectual Property, and Innovation . 4 
5. Notice of Action Pursuant to Section 301: China 's Acts, Policies, and Practices Related to 
Technology Transfer, Intellectual Property, an d Innovation .5  
                                                
1 See Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices , 
https://ustr.gov/sites/default/files/enforcement/301Investigations/2018 -17709.pdf  
2 See https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF  
3 See https://www.whitehouse.gov/presidential -actions/presidential -memorandum -actions -united -
states -related -section -301-investigation/  
4 See Federal Register/ Vol. 83, No.119/ Wednesday, June 20, 2018/ Notices [Docket Number USTR -
2018-0018] see also https://ustr.gov/sites/default/files/2018 -13248.pdf  WT/DS565/1 • G/L/1260  
 
- 2 - 
 
   
This request for consultations also concerns  any modification, replacement or amendments  to the 
measures identified above , and any closely connected , subsequent  or implementing measures . 
    
These measures appear to be inconsistent with the relevant provisions of the WTO covered 
agreements including:  
1. Article I.1 of the GATT 1994, because the measures at issue fail to extend immediately and 
unconditionally to the products originating in China  an "advantage, favour, privilege or 
immunity" g ranted by the United States "[w]ith respect to customs duties and charges of 
any kind imposed on or in connection with" the importation of products originating in the 
territor ies of other Members . 
2. Article II.1(a) and (b) of the GATT 1994, because the measu res at issue fail to accord to 
the products originating in China identified in the above -mentioned  documents the 
treatment no less favourable  than that provided for in the United States 's Schedule of 
Concessions  and Commitments annexed to the GATT 1994.  
3. Article 23 of the DSU, because United States made a determination to the effect that a 
violation has occurred  without recourse to the dispute settlement in accordance with the 
DSU and the measures at issue fail to recourse to, and abide by, the rules and pro cedures 
of the DSU, when the United States seeks the redress of a violation of obligation or other 
nullification or impairment of benefits under the covered agreements or an impediment to 
the attainment of any objective of the covered agreements.  
 
In addit ion, and as a consequence of the foregoing, the measures at issue appear to nullify or 
impair benefits accruing to China directly or indirectly under the cited agreements.  
China reserves the right to raise additional claims and legal matters regarding the above -
mentioned measures during the course of the consultations.  
 
China looks forward to receiving your reply to the present consultations  request and to scheduling 
a mutually convenient date for consultations . 
 
 
 
__________  
                                                                                                                                                  
5 See Federal Register / Vol. 83, No. 159 / Thursday, August 16, 2018 / Notices , 
https://ustr.gov/sites/default/files/enforcement/301Investigations/2018 -17709.pdf