Taking almost all it could, China is set to go before the World Trade Organization (WTO) to ask for help in the ongoing trade dispute with the US. This despite reports that the US also thinks it is the aggrieved party in the situation; both sides claim that their side is in the right, and both are pushing for recognition of that fact.
China's latest rant against the US tariffs is scheduled to go all the way up the WTO brass. Financial Post reports that China, while engaged in low-level talks with the US on previously-imposed tariffs, has posted a complaint to the WTO. This enables both parties to engage in higher-level talks, the kind of which can hopefully complete both parties' requests-particularly in resolving issues that made the imposition of the tariffs so sudden.
The US is currently preparing a whole new set of tariffs worth $200 billion. China, for its part, has already promised to retaliate by imposing tariffs on $60 billion worth of American goods. Most of the products that the US is imposing extra duties on are in the manufacturing industry-particularly aluminum and steel products.
The tensions between the US and China have more repercussions for the US, as it looks like. The trade war is expected to become the main issue when the midterm elections happen. This is the view of Asian Trade Center executive director Deborah Elms. She also thinks that both sides can still hold out, thereby eliminating the need for a new round of talks.
Elms pointed out the main reason why both sides are still holding out-one or the other thinks that they still possess the upper hand in the dispute. There is no winner here, CNBC reports, with Elms adding that the challenge would be to make the other see that there are no winners in the trade dispute. With another round of tariffs from the US expected, Chinese goods and the consumers that buy them are about to reel from more expensive prices yet again.
US ambassador to the WTO Dennis Shea shares his ideas. He said that in the case of the WTO, the US could stall by waiting out the appointment of a new member. No members can vote if the appellate body, which China is dealing with, is incomplete, and one from the group of three is already resigning. The US could be eyeing from holding out appointing a new member of the body to stop China's appeal.
