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China upset about India toy ban, likely to ask WTO for settlement
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10:19, February 04, 2009

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The Chinese government protests India's ban on Chinese toy imports, saying likely to ask the World Trade Organization to probe into the case if the ban violates WTO laws, the English language newspaper China Daily Newspaper reported on Wednesday.

The move came after India announced a six-month ban on toy imports from China on Jan. 23.

However, the Indian government gave no reason for the ban effective immediately. The Indian media said it was aimed at protecting Indian manufacturers from being squeezed by the cheaper Chinese products, according to the newspaper.

Experts said it was a sign that China would be leveraging WTO rules to help protect its manufacturers from illegal trade barriers and punitive measures by its trading partners at a time when protectionism is growing amid the global economic recession.

"The ban can't hold water. The Indian side is doomed to lose in the court if the Chinese government appealed to the WTO Dispute Settlement Body", the newspaper quoted Fu Donghui, managing director of Allbright Law Firm Beijing, as saying.

Toy imports from China each year accounted for more than 50 percent of the retailing market in India, with an estimated value at more than 500 million U.S. dollars in 2007.

China produced about 70 percent of toys worldwide and the southern business hub Guangdong Province contributed about 70 percent of the total.

The paper said many toy manufacturers in the region had complained about the imports cut by India.

A similar case happened in December when China asked the WTO to investigate anti-subsidy and anti-dumping duties imposed by the U.S. on four categories of imports from China.

Fu said the Chinese government used to keep silent, but now the country resorted to the WTO to prevent trade partners abusing the WTO rules, which was a right choice.

Source: Xinhua

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