BEIJING, March 20 -- China won't change the high tariffs it places on some auto-part imports in the near term, despite U.S. claims they represent unfair competition, an official at China's top economic planning agency said yesterday.

    China began levying higher tariffs on some auto-part imports April 1, partly in an effort to encourage more local production.

    In February, U.S. Trade Representative Rob Portman threatened to take action at the World Trade Organization unless China took measures soon on the tariffs.

    But Li Wanli, a division chief under the Department of Industrial Policy in the National Development and Reform Commission, said the United States' complaints were groundless.

    "We consider (the auto-parts tariff policy) complies with WTO rules," Li said. Li said the policy doesn't target specific firms.

    China classifies some imported auto parts as complete vehicles and charges a tariff of up to 30 percent on them. That compares with a much lower tariff of between 13 percent and 17 percent for other imported auto parts.

    Starting July 1, 2006, the higher tariff will be extended to any imported auto parts valued at 60 percent or more of the total price of the complete vehicle the parts would be used for.

    The government had sought opinions from companies, some of them from the United States, before introducing the auto policy, Li said.

    In early March, a delegation led by James Mendenhall, general counsel for the U.S. Trade Representative, met Chinese officials to talk about the tariff dispute and intellectual property rights.

    China's government ministries haven't publicly disclosed any immediate moves to solve the tariff dispute. But the trade issue is expected to be on the agenda during President Hu Jintao's visit to Washington in April.

    The government is facing increasing pressure to allow more imports from the United States and to let the yuan rise further to reduce what the United States. claims is an "unfair export advantage" for China.

    China's trade surplus soared to a record-high US$102 billion in 2005, more than triple the US$32 billion in the previous year.

(Source: Shenzhen Daily/Agencies)