European Union nations have given trade negotiators the go-ahead to launch a case against Beijing at the World Trade Organization over tariff levels on car parts exported to China, but the European Commission has not yet made a decision, the Wall Street Journal reported. Under Chinese rules, auto parts making up more than 60% of the value of a car are subject to a 28% tariff, which is the same duty that complete new cars face. Components making up less than that share of a vehicle's value are charged only 10%. The EU contends this amounts to a "local content" rule, which forces auto makers to source substantial amounts of their car components within China. Beijing maintains the rules comply with WTO agreements and simply prevent car makers from importing whole cars as spare parts to avoid higher tariffs.
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