China to Challenge India’s Toy Ban at the WTO

China may take action against India’s decision to temporarily ban Chinese toy imports. The Times of India reports:

China plans to move the World Trade Organisation challenging India’s decision to ban Chinese toy imports. It feels that the ban amounts to violating WTO laws, which is something the world body must investigate.

This is apparently a desperate move on the part of Chinese rulers engaged in saving the toy industry, which has already retrenched thousands of workers because of loss in export market. More than 1,000 toy manufacturers have closed down in recent months.

New Delhi announced a six-month ban on imports of toys from China on January 23. The Directorate General of Foreign Trade from India, which imposed the ban, did not cite any reasons to support it. But Indian industry sources claimed it was meant to protect local manufacturers from cheap Chinese imports. Chinese toys make up nearly half of the total toys retained in India, sources claimed.

See also the Reuters article, “China Mulling WTO Case Over India Toy Ban,” for more on the story.


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