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China sets up investigation bureau for WTO

China has set up a body to investigate damage to domestic industry by unfair trade practices by other members following the nation's entry to the World Trade Organisation, officials said on Thursday.

The Industrial Damage Investigation Bureau would operate under the authority of the State Economic and Trade Commission super-ministry, they told a news conference.

The bureau would complement the work of the Foreign Trade Ministry's newly formed Fair Trade Bureau, which would determine cases involving dumping and subsidies as well as China's use of safeguards against import surges, officials said.

State Economic and Trade Commission Vice Minister Zhang Zhigang said China would fight unfair trade practices such as dumping and use of subsidies.

"This conduct hurts the interest of others and is against the rules of the WTO, so we oppose these activities," he said.

The foreign trade ministry would also address complaints of dumping by China in other countries and help domestic companies plan legal responses, state media said.

According to some estimates, China is the second biggest recipient of complaints about dumping behind the United States, and many trading partners fear such cases will grow as the nation becomes more integrated with the global economy.

Following China's WTO entry on Tuesday, the cabinet announced rules on anti-dumping, anti-subsidies and safeguards.

Under the rules for safeguards, China can adopt temporary measures against imports for periods of up to 200 days, the official Xinhua news agency said. Longer-term measures can last up to four years, it said.

China would also adopt "corresponding measures" against any country that imposes limits against Chinese goods which Beijing considers "biased", Xinhua said.

Japan and China are embroiled in an eight month-old trade row that started after Tokyo imposed curbs on imports of Chinese farm products including leeks, shiitake mushrooms and rushes for traditional tatami mats.

China struck back in June with 100 per cent punitive tariffs on Japanese cars, mobile phones and air conditioners.

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