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China 'Regrets' WTO Ruling On U.S. Tire Tariff

Beijing regrets a WTO ruling that U.S. acted within its rights when it raised import taxes on Chinese tires by as much as 35 percent and will file a complaint.

BEIJING (AP) -- China regrets a World Trade Organization ruling that the United States acted within its rights when it raised import taxes on Chinese tires by as much as 35 percent and will file a complaint, an official was quoted as saying Tuesday.

The unidentified Ministry of Commerce official was quoted by the official Xinhua News Agency as saying that China "is deeply concerned" about the impact on China's tire industry, and said China will study the WTO report and file a complaint.

Xinhua said the official was from the ministry's Treaty and Law Department but did not identify him.

The three-year tariff was approved in September 2009 by President Barack Obama. It amounts to a 35 percent additional charge in the first year, 30 percent in the second year and 25 percent in the third year, on top of a regular 4 percent import duty.

Beijing said the tariff was protectionist. It has 60 days to appeal the ruling.

U.S. imports of low-grade Chinese tires rose threefold to about 46 million tires between 2004 and 2008, but fell by about 15 percent in the first half of 2009 -- before the new tariff was imposed.

The dispute is the latest in a string of trade battles between the United States and China, the world's biggest importer and exporter, respectively.

The countries have sought WTO panel rulings on issues ranging from steel pipes to music piracy, poultry and auto parts in recent years.

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