World Trade Organization
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Slide 5 adds the involvement of foreign-owned suppliers in China that also produce parts for the brake system, with material and parts sourced both in China and abroad. The part for the brake system is then shipped either to a foreign-owned parts manufacturer or directly to a vehicle manufacturer, and is incorporated into the brake assembly of a vehicle. 
Slide 6 adds the involvement of joint ventures in the parts industry, which import some key parts, source others parts within China, and ship either to foreign parts manufacturers or directly to vehicle manufacturers. 
Slide 7 adds the involvement of wholly owned Chinese parts manufacturers. The assembly still has enough imported key parts to be Deemed Imported. 
The last diagram emphasizes just how artificial the entire Chinese circumvention argument really is. China argues that it can aggregate the imported content of all brake parts in China, even though those parts pass through multiple independent parties in the internal market and are combined with domestic parts. China insists that every imported part must be linked by a vehicle manufacturer to a specific production model, at the same time as it is aggregated in what China characterizes as a broad effort to circumvent the motor vehicle rate. It is impossible to reconcile this with China's Article XX(d) argument. Commercial reality is far removed from the environment in which China suggests circumvention is a serious, if unfounded possibility. Simply, there is no necessity to justify the measures, and China's defence fails entirely. Directory: english -> tratop e -> dispu e dispu e -> Annex g list of exhibits submitted by the parties dispu e -> World Trade Organization dispu e -> World Trade Organization Download 1.27 Mb. Share with your friends:
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