Updated - Tactical move’: China's WTO gambit over US tariffs more about optics than outcomes
By holding off on retaliatory tariffs, Beijing is playing the long game as Trump 2.0 reshapes global trade, say analysts.
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SINGAPORE: Rather than retaliatory duties, China is firing back at newly-imposed US trade tariffs by vowing to take the case to the World Trade Organization (WTO) - a move aimed at portraying the country as championing global rules, in contrast to an America led by Donald Trump, say analysts.
That’s even though Beijing is clear-eyed that meaningful results are not expected from the WTO, due to its dispute settlement mechanism remaining effectively paralysed over the past five years.
Over the weekend, Trump ordered 10 per cent tariffs on goods from China, due to take effect on Tuesday (Feb 4).
“The rationale for filing the case (at the WTO) is to give China the moral high ground for retaliation,” Stephen Olson, a visiting fellow at the ISEAS-Yusof Ishak Institute, told CNA.
“By following WTO pro