MNI POLICY: China Asks Australia to Investigate Rapeseed Cases

By Iris Ouyang

     BEIJING (MNI) - China has cancelled imports of rapeseed from three

Australian companies as the products do not meet the necessary qualifications,

the Ministry of Commerce said Thursday

     There was no update offered on the status of the ongoing trade talks

between the U.S. and China.

     MNI highlights major points deserve particular attention from the press

briefing:

     --China has asked Australia to investigate the rapeseed cases and to

prevent such cases from occurring again, MOFCOM Spokesman Gao Feng said.

     --China's decision to again delay any tariff increase on U.S. vehicles is

aimed at creating a favourable atmosphere for the current round of trade talks

between the world's two largest economies, MOFCOM said. The move came as a

reaction to the U.S. similar measure to pause raising tariffs on Chinese goods

worth $200 billion to 25% from the current 10%, Gao indicated.

     --Gao said China and the U.S. discussed the text of a possible trade deal

last week in Beijing, with some new progress, without elaborating more, adding

"it paves way for the 9th round of trade talks."

     --Gao refused to offer updated information on the China-U.S. trade talks

this week, only noting the talks are ongoing, saying he will update the public

later.

     --MOFCOM will tighten regulations and improve business environment for

healthy and stable development of the car market, Gao said, after acknowledging

recent cuts in value-added taxes has led to car makers to decrease vehicle

prices for Chinese consumers. He also noted the VAT reduction has caused lower

prices of oil and car components. The MOFCOM will work with other governmental

departments to facilitate upgrading of car consumption, Gao said.

     --China will defend their basic rights as a developing countries, Gao

stressed, when asked whether whether China will give up on its special treatment

granted by the WTO. China's stance on WTO reform is very clear -- it will not

avoid responsibilities in line with its capability, Gao said.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

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