In April 2001, Japan imports slowed to three Chinese agricultural products – fresh shiitake mushrooms, rushes for grass mats and Chinese onions. In retaliation, in June 2001, China imposed a 100% punitive tariffs on imports from three Japanese export products – cars, mobile phones and air conditioning. Japan violation of WTO rules has been accused. The dispute was subsequently resolved, but because China is not a member of the WTO at the time of the dispute, the dispute generated a lot of controversy Rega … Read more »

In April 2001, Japan imports slowed to three Chinese agricultural products – fresh shiitake mushrooms, rushes for grass mats and Chinese onions. In retaliation, in June 2001, China imposed a 100% punitive tariffs on imports from three Japanese export products – cars, mobile phones and air conditioning. Japan violation of WTO rules has been accused. The dispute was subsequently resolved, but because China is not a member of the WTO at the time of the dispute, the dispute generated a lot of controversy on trade protection measures. Leads to the WTO dispute settlement process and compares it with the old GATT system and emphasizes the role of political interest groups in trade policy. Questions whether Japan had a case for relying on their protection or was it just to protect his mighty shiitake mushroom farmers. Moreover, the question of whether the WTO membership would in turn protect China from trade disputes such as this.
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from
Carola Ramon-Berjano,
Ka-Fu Wong,
Hitomi Iizaka
Source: University of Hong Kong
16 pages.
Publication Date: May 04, 2007. Prod #: HKU660-PDF-ENG
China Versus Japan on the brink of a trade war HBR case solution

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