UNITED STATES – TARIFF MEASURES ON CERTAIN GOODS FROM CHINA II REQUEST FOR CONSULTATIONS BY CHINA
Document: REQUEST FOR CONSULTATIONS BY
Date: 27 August 2018
Document codes: WT/DS565/1; G/L/1260
Complainant: China
Respondent: U.S.
Dispute stage: Panel
Agreements cited: Art. I:1, II:1, II:1(a)  GATT 1994Art. 23  Dispute Settlement Understanding (DSU)

UNITED STATES – TARIFF MEASURES ON CERTAIN GOODS FROM CHINA II
REQUEST FOR CONSULTATIONS 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 originating 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 Section 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, and 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

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" 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 products originating in the
territories 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 addition, 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.