China agrees to auto tariff talks

Chinese officials are to hold talks with representatives of the EU and the US after they accused Beijing on March 30 of imposing discriminatory tariffs on imports of foreign car parts, Bloomberg reported. The decision came a day after Vice-Premier Wu Yi signed agreements to buy US$4.4 billion worth of goods from US companies including aircraft, car parts and electronics, and ahead of an upcoming US visit by President Hu Jintao, in which China's currency controls and trade surplus are expected to be key topics for discussion. The US and EU, which together bought 43% of China's exports in 2005, claim China's decision last year to impose tariffs on car parts, based on the overall value of imports in a complete vehicle, violated its WTO commitments. Should the parties fail to negotiate a solution in 60 days, the US and EU may ask the WTO to arbitrate.