Chinese diplomat: US's 301 investigation is against WTO rules

The US government's latest tariff plan on imports from China contradicts its commitments that such a decision be based only on the World Trade Organization (WTO)'s Dispute Settlement Body (DSB), said Zhang Xiangchen, Chinese ambassador to the WTO, on Monday during a meeting in Geneva, Switzerland.

Zhang said what the United States had done contradicts to its commitments made at WTO more than a decade ago when it had "explicitly, officially, repeatedly and unconditionally confirmed" that it would base a "Section 301" decision only on adopted DSB findings.

"Section 301" is a measure under the US Trade Act of 1974 that allows the president to take all appropriate action, including retaliation, if an investigation finds foreign trade practices burden or restrict US commerce or are unreasonable or discriminatory.

"According to the WTO rulings and the US commitment, the US shall by no means determine unilaterally based on a 301 investigation that other members have violated the WTO rules," Zhang said during a meeting of WTO's Council on Trade in Goods.

Last Thursday, US President Donald Trump signed a memorandum that could impose tariffs on up to 60 billion US dollars of imports from China and restrictions on Chinese investment in the United States.

The memorandum is based on a Section 301 investigation, launched by the Trump administration in August 2017, into alleged Chinese intellectual property and technology transfer practices.