China responds cautiously to WTO challenge – Richard McGregor

From the Financial Times (link)

China responded cautiously on Friday to an unprecedented joint World Trade Organisation challenge to its auto parts tariffs by the US and Europe, saying only that it “regretted” the move and was studying how to respond.

The timing of the challenge, however, before the first state visit to Washington by Hu Jintao, China’s president, will create significant internal tensions in Beijing about how to deal with demands on trade issues.

China is already under pressure to make substantive concessions on a range of US complaints, led by intellectual property rights and also barriers to entry for foreign telecoms providers.

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