U.S. Trade Representative Michael Froman speaks during a press conference in Washington D.C., capital of the United States, Dec. 8, 2015. The United States has launched dispute settlement proceedings at the World Trade Organization (WTO) by requesting consultations with China over its different tax policy on foreign aircraft versus planes produced in China, a top U.S. trade official said Tuesday. (Xinhua/Gao Pan)
The Ministry of Commerce (MOC) has expressed regret over the United States formally requesting consultations with China over its different taxing of foreign and domestically produced aircraft.
China has always abided by World Trade Organization (WTO) rules on aviation manufacturing development, said the MOC in a statement on Wednesday.
Earlier in the day, U.S. Trade Representative Michael Froman said China imposes 17-percent VAT on imported aircraft weighing under 25 metric tons while exempting such aircraft made in China from the tax.
The United States has launched dispute settlement proceedings at the WTO by requesting consultations with China, Froman said.
China has received the request and will handle the issue according to WTO dispute settlement procedures, said the MOC.
Consultations are the first step in the WTO dispute settlement process. If the United States and China are not able to reach a mutually agreed solutions, the United States may request that the WTO establish a dispute settlement panel to examine the matter.
