US breaking WTO rules, China says

BEIJING (AFP) - China said Thursday an increasingly protectionist United States was breaking World Trade Organisation rules as part of ongoing commercial disputes.

The violation of WTO regulations has come about in the process of anti-dumping and anti-subsidy investigations launched by the United States against five product categories, Vice Commerce Minister Gao Hucheng said.

"Investigations and measures undertaken by the United States will lead to double taxation," Gao told a briefing in Beijing. "You can't do that according to WTO rules."

The five categories -- including items such as art paper, steel pipe and tyres -- have been targeted in the period since November, a frequency rarely seen in contemporary global trade, Gao said.

He did not explain how the US investigations would lead to double taxation of the products.

"This will directly impact 860 million dollars of exports, the activities of over 500 enterprises and the jobs of 70,000 people," he said.

The commerce ministry held the briefing at a time of intensifying Sino-US trade disputes, fuelled by recent findings that a wide of range of Chinese exports are unsafe materials.

The enormous trade imbalance between the two countries is also a consistent cause of concern in the United States. The US trade deficit with China hit 232.5 billion dollars last year, according to official US figures.

"The exchanges and cooperation between and the US have reached a very high level in trade, investment and finance," the commerce ministry said in a statement released prior to the press conference.

"But we have also noticed that some discordant notes have appeared in the China-US trade and economic relationship since this year."