WT/DS543/7  
 
7 December 2018  
(18-7838) Page: 1/4 
  Original: English  
 
UNITED STATES – TARIFF MEASURES ON C ERTAIN GOODS FROM CH INA 
REQUEST FOR THE ESTA BLISHMENT OF A PANEL  BY CHINA  
The following communication, dated 6 December 2018 , from the delegation of China  to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
_______________  
On 4 April 2018,1 the People 's Republic of China ( "China ") requested consultations with the United 
States of America ( "United States ") pursuant to Article 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes  (DSU) and Article XXII I of the General Agreement 
on Tariffs and Trade 1994  (GATT 1994).  China filed addenda to its 4 April 2018 requests for 
consultati ons on 6 July 2018,2 16 July 2018,3 and 18 September 20184 as a result of the expansion 
of the extraordinary tariffs being imposed on imports of Chinese goods into the United States after 
those subject to China 's initial requests for consultations.  
China and the  United States held consultations on 28 August 2018 and 22 October 2018.  These 
consultations failed to resolve the dispute.  
As a result, in order to resolve the dispute, China requests the establishment of a Panel pursuant to 
Articles 4.7 and 6 of t he DSU and Article XXII I of the GATT 1994.  China further requests that the 
Panel have the standard terms of reference, as set forth i n Article 7.1 of the DSU.  
A. Background     
On 18 August 2017, the United States Trade Representative ( "USTR ") initiated an in vestigation 
under Section 301 of the Trade Act of 1974 concerning  alleged acts, policies, and practices by China 
related to technology transfer, intellectual property, and innovation.5  On 22 March 2018, the USTR 
release d its report6 on the investigation under Section 301 of the Trade Act of 1974.  On the same 
date of 22 March 2018, the United States issued a Presidential Memorandum,7 in which the USTR 
was directed to take all appropriate action under Section 301 of the Trade Act of 1974 to address 
the acts, policies, and practices of China, and that such action should include increas ing tariffs on 
importing goods from China.  Thereafter, the USTR published a series of notices, according to which 
the United States  started to impose 25% additional tariffs on approximately $34 billion of Chinese 
imports  from 6 July 2018,8 and impose 10% additional tariffs on approximately $200 billion of 
                                                
1 The request for consultations was circulated on 5 April 2018 in document  G/L/1219 , WT/DS543/1.  
2 The addendum to the request for consultations was circulated on 9 July 2018 in document 
G/L/1219/Add.1 , WT/DS543/1/Add.1 . 
3 The addendum to the request for consultations was circulated on 17 July 2018 in document  
G/L/1219/Add.2 , WT/DS543/1/Add.2.  
4 The addendum to the request for consultations was circulated on 20 September  2018 in document  
G/L/1219/Add.3 , WT/DS543/1/Add.3.  
5 82 FR 40,213 (Aug. 24, 2017).  
6 See https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF.  
7 See https://www.whitehou se.gov/presidential -actions/presidential -memorandum -actions -united -
states -related -section -301-investigation/  
8 Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action 
Pursuant to Section 301: China’s Acts, Policie s, and Practices Related to Technology Transfer, Intellectual 
Property, and Innovation , 83 FR 14,906 (Apr. 6, 2018); Notice of Action and Request for Public Comment WT/DS543/7  
 
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  Chinese imports  from 24 September 2018.9  The latter tariff increases are scheduled to increase to 
25% on 1 January 2019.10  
B. Measures at Issue  
The measures at issue in this request  include the action s taken by the U nited States, based on the 
USTR 's 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  and p ursuant to 
sections 301(b), 301(c), and 304(a) of the Trade Act of 1974 and the direction made in the 
President 's statement11 to impose an additional ad valorem duty12 upon certain import ed products 
of Chinese ori gin.  The above mentioned actions include:  
1. An additional 25% duty ad valorem on approximately $34 billion worth of imports from China 
announced by the USTR on 15 June 2018 and implemented by the Federal Register notice of 
20 June 20 18 (Notice of Action and Request for Public Comment Concerning Proposed 
Determination of Action Pursuant to Section 301: China 's Acts, Policies and Practices Related to 
Technology Transfer, Intellectual Property and Innovation , (83 Fed. Reg. 28,710)) ; and  
2. An additional 10% duty ad valorem on approximately $200 billion worth of imports from China 
implemented on 24 September 2018, and the rate of additional duty will increase to 25% ad 
valorem on 1 January 2019,13 according to the announcement by the USTR on 2 1 September 
2018 ( Notice of Modification of Section 301 Action: China 's Acts, Policies and Practices Related 
to Technology Transfer, Intellectual Property and Innovation , (83 Fed. Reg. 47,974)).  
The measures at issue are adopted and implemented through, inter alia , the following legal 
instruments:  
a. Section 301 -310 of the Trade Act of 1974, as amended (19 U.S.C., paragraphs 2411 -2420), 
and 15 Code of Federal Regulations Subtitle C, Chapter XX, Parts 2006 and 2002.3.  
b. Initiation of Section 301 Investigation; He aring; and Request for Public Comments: China 's 
Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and 
Innovation  (Aug. 24, 2017).14  
c. 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  
(Mar. 22, 2018) (hereinafter Section 301 report).15 
d. Update Concerning China 's Acts, Policies, and Practices Related to Technology Transfer, 
                                                
Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies , and Practices 
Related to Technology Transfer, Intellectual Property, and Innovation , 83 FR 28,710 (June 20, 2018).  
9 The 10% additional tariffs shall be increased to 25% starting from 1 January 2019 according to Notice 
of Modification of Section 301 Acti on: China’s Acts, Policies, and Practices Related to Technology Transfer, 
Intellectual Property, and Innovation , 83 FR 47,974 (Sept. 21, 2018).  
10 Id. at 47,975.   In addition, the application of t his additional 25% tariff for $200 billion import ed 
products of Chinese origin may be postponed as per the statement by the United States after the bilateral 
meeting between China and the United States on 1 December 2018 in Argentina. See 
https://www.whitehouse.gov/briefings -statements/statement -press -secretary -regarding-presidents -working -
dinner -china/.  
11 Statement on Steps to Protect Domestic Technology and Intellectual Property from China’s 
Discriminatory and Burdensome Trade Practices. See https://www.whitehouse.gov/briefings -
statements/statement -steps -protect -domestic -technology -intellectual -property -chinas -discriminatory -
burdensome -trade -practices/.  
12 The rates of duty applicable to products of China shall apply in addition to all other applicable duties, 
fees, exactions, and charges. See 83 FR 28,710 (June 20, 2018); 83 FR 47,974 (Sept. 21, 2018).  
13 The application of t his additional 25% tariff for $200 billion import ed products of Chinese origin may 
be postponed as per the statement by the United States after the bilateral meeting between China and the 
United States on 1 December 2018 in Argentina. See https://www.whitehouse.gov/briefings -
statements/statement -press -secretary -regarding -presidents -working -dinner -china/.  
14 82 FR 40,213 (Aug. 24, 2017).  
15 See https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF.  WT/DS543/7  
 
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  Intellectual Pr operty, and Innovation  (Nov. 20, 2018).16 
e. 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  (Mar. 22, 2018).17 
f. Notice o f Determination and Request for Public Comment Concerning Proposed 
Determination of Action Pursuant to Section 301: China 's Acts, Policies, and Practices 
Related to Technology Transfer, Intellectual Property, and Innovation  (Apr. 6, 2018).18 
g. USTR  Issues Tariffs on Chinese Products in Response to Unfair Trade Practices (June 15, 
2018).19 
h. Notice of Action and Request for Public Comment Concerning Proposed Determination of 
Action Pursuant to Section 301: China 's Acts, Policies, and Practices Related t o Technology 
Transfer, Intellectual Property, and Innovation  (June 20, 2018) (25% duties imposed on 
$34 billion worth of goods from China).20 
i. Statement By U.S. Trade Representative Robert Lighthizer on Section 301 Action (July 10, 
2018).21  
j. Procedures To Con sider Requests for Exclusion of Particular Products From the 
Determination of Action Pursuant to Section 301: China 's Acts, Policies, and Practices 
Related to Technology Transfer, Intellectual Property, and Innovation  (July 11, 2018) 
(product exclusion pro cedures for $34 billion list).22 
k. Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301: 
China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, 
and Innovation  (July 17, 2018) (proposed $ 200 billion list).23 
l. Extension of Public Comment Period Concerning Proposed Modification of Action Pursuant 
to Section 301: China 's Acts, Policies, and Practices Related to Technology Transfer, 
Intellectual Property, and Innovation  (Aug. 7, 2018) (extended comment period for $200 
billion list as proposed duties increased from 10% to 25%).24 
m. USTR Finalizes Tariffs on $200 Billion of Chinese Imports in Response to China 's Unfair 
Trade Practices (Sept. 18, 2018).25 
n. Notice of Modification of Section 301 Action: Ch ina's Acts, Policies, and Practices Related to 
Technology Transfer, Intellectual Property, and Innovation  (Sept. 21, 2018) (Final $200 
Billion List).26   
o. Conforming Amendment and Modification to Section 301 Action: China 's Acts, Policies, and 
Practices Rela ted to Technology Transfer, Intellectual Property, and Innovation  (Sept. 28, 
                                                
16 See 
https://ustr.gov/sites/default/files/enforcement/301Investigations/301%20Report%20Update.pdf.  
17 See https://www.whitehouse.gov/presidential -actions/presidential -memorandum -actions -united-
states -related -section -301-investigation/.  
18 83 FR 14,906 (Apr. 6, 2018).  
19 See https://ustr.gov/about -us/policy -offices/press -office/press -releases/2018/june/ustr -issues -tariffs -
chinese -products.  
20 83 FR 28,710 (June 20, 2018).  
21 See https://ustr.gov/ab out-us/policy -offices/press -office/press -releases/2018/july/statement -us-
trade -representative.  
22 83 FR 32,181 (July 11, 2018).  
23 83 FR 33,608 (July 17, 2018).  
24 83 FR 38,760 (Aug. 7, 2018).  
25 See https://ustr.gov/about -us/policy -offices/press -office/press -releases/2018/september/ustr -
finalizes -tariffs -200. 
26 83 FR 47,974 (Sept. 21, 2018) (citing to Section 307(a)(1) for the authority to modify the action 
being taken under Section 301).   WT/DS543/7  
 
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  2018).27  
p. Section 301 Trade Remedies to be Assessed on Certain Products from China (U.S. Customs 
and Border Protection).28 
C. Legal Basis of the Complaint  
The measures at issue appear to be inconsistent with the United States ' obligations under the 
following provisions of the GATT 1994 and the DSU : 
1. Article I:1 of the GATT 1994, because the United  States imposes additional tariffs on certain 
imported products as identified in measures 1 and 2 above that exclusively apply to Chinese 
products, and therefore fails to accord immediately and unconditionally to certain products 
originating in China and imported to the United States the "advantage, favour, privilege or 
immunity" granted by the United States "[w]ith respect to customs duties and charges of 
any kind imposed on or in connection with" the importation of the like products originating 
in the territories  of other WTO Members;  
2. Article II:1(a) and (b) of the GATT 1994, because the United States imposes additional tariffs 
on certain imported products originated in China as identified in measures 1 and 2 above 
that are in excess of United States bound rates i n its Schedule of Concessions and 
Commitments annexed to the GATT 1994, and therefore fails to accord to certain products 
originating in China and imported into the United States, as identified in the above -
mentioned legal instruments, treatment no less fa vourable than that provided for in the 
United States' Schedule of Concessions and Commitments annexed to the GATT 1994 ; and 
3. Article 23.1, and Article 23.2 (a ), (b), and (c) of the DSU, because the United States fail s to 
follow the required procedures and c onditions set out in Article 23.1 and Article 23.2(a), (b) 
and (c) . Specifically,  when seeking the redress of the violation of obligations or other 
nullification or impairment of benefits under the covered agreements of WTO agreements or 
an impediment to t he attainment of any objective of the covered agreements of WTO 
agreements, the United States fail s to seek recourse to dispute settlement mechanism under 
the DSU to determine whether China 's certain acts, policies, or practices identified in the 
Section 3 01 report violated a covered agreement .  Instead, the United States unilaterally 
imposes the additional tariffs on certain imported products originated in China, which are 
identified in measures 1 and 2 above, based on the findings and/or determinations ma de in 
the Section 301 report .  
This request for panel establishment also concerns any modification, replacement or amendment to 
the measures identified above, and any closely connected, subsequent measures .29 
China asks that this request be placed on the agenda of the DSB meeting to be held on 
18 December  2018. 
 
__________  
                                                
27 83 FR 49,153 (Sept. 28, 2018).  
28 See https://www.cbp.gov/trade/progr ams-administration/entry -summary/section -301-trade-
remedies.  
29 Especially according to Notice of Modification of Section 301 Action: China’s Acts, Policies, and 
Practices Related to Technology Transfer, Intellectual Property, and Innovation , 83 FR 47,974 (Sept. 21, 
2018), the present 10% additional tariffs imposed upon $200 billion worth of imports of Chinese origin shall be 
increased to 25% starting from 1 January 2019.  China notes that the implementing date of 1 January 2019 
may be postponed as per the statement by the United States after the bilateral meeting between China and 
the United States on 1 December 2018 in Argentina.  See https://www.whitehouse.gov/briefings -
statements/statement -press -secretary -regarding -presidents -working -dinner -china/.