China held key talks with the United States on the controversial US safeguard tariffs on steel imports in Washington over the weekend, demanding exemption or compensation in accordance with World Trade Organization (WTO) rules.

This is the first time that China has executed its rights as a WTO member after joining it in December.

The Chinese delegation claimed the US action flouted WTO rules and asked the US side to exempt China from the tariffs as it did to many other developing countries.

It demanded compensation for losses incurred on Chinese iron and steel companies by the US steel tariffs while reiterating that China retains the right to take further action within the WTO framework.

The Chinese delegation was headed by Shang Ming, commissioner-general of the Fair Trade Bureau of Imports and Exports under the Ministry of Foreign Trade and Economic Cooperation (MOFTEC).

A MOFTEC spokesman said China asked on Friday to join the European Union and the US panel under the WTO dispute resolution mechanism.

US President George W. Bush slapped safeguard tariffs of 8 percent to 30 percent on several types of imported steel on March 5 in an effort to help the ailing US industry. The tariffs took effect on Wednesday.

The tariffs exempted countries that have signed free trade agreements with the United States -- Canada, Israel, Jordan and Mexico -- and developing countries with only limited steel exports to the United States.

Australia has negotiated an exemption to most of the tariffs, with Prime Minister John Howard saying on March 11 that 85 percent of Australian steel exports to the United States would not be affected by the new tariffs.

The US protectionism measures have triggered angry attacks from major trading partners.

Japan and South Korea lodged a protest at the WTO on the day the measures took effect.

The European Union has already launched a similar bid for the WTO to rule on the legality of the US move.

It also drew up on Friday a list of US products to be hit with punitive import taxes in retaliation for the duties.

(China Daily March 25, 2002)