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Trade Minister: China's Punitive Tariffs a Big Blow to Japan
A retaliatory decision by China to slap 100 percent tariffs on Japanese autos, mobile phones and air conditioners would deal a major blow to industries in Japan, Trade Minister Takeo Hiranuma said Tuesday.
"The three products have high growth potential. If the measure is prolonged, its damage to Japanese industry will be grave," he told a regular press conference.
"If it continued for a year, the damage would amount to 67 billion yen (540 million dollars)," Hiranuma said. "This is no small figure."
Beijing's decision to apply the tariffs from Friday last week was in response to a move by Tokyo in April to put temporary curbs on Chinese leeks, shiitake mushrooms and tatami rushes.
"We hope to send officials ranked above department chiefs to Beijing and hold face-to-face talks," he said. "Our appropriate action now is to communicate our views to China firmly."
Hiranuma reiterated China should repeal its punitive action.
"Retaliation is not permitted under WTO (World Trade Organisation) rules," he said. "As China is about to join the WTO, we want them to drop the measure in line with the rules."
The deepening dispute came at a sensitive time for China, as it struck an accord with the European Commission Wednesday in a significant step bringing the communist nation closer to its long-desired goal of WTO membership.
Japanese automakers have slammed the retaliation measures, saying they would effectively cut off exports of finished vehicles to China.
Japan exported a total of 4.45 million vehicles in 2000, of which 47,090 went to China, according to the Japan Automobile Manufacturers Association.
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