Russia, China to reduce use of dollar in trade, says Putin
MOSCOW: Russian President Vladimir Putin on Tuesday said Moscow and Beijing plan to use their own national currencies more often in trade deals as Russia’s relations with the West deteriorate.
“The Russian and Chinese sides confirmed their interest in using national currencies more actively in reciprocal payments,” Putin told journalists during a press briefing with Chinese Leader Xi Jinping after talks at an economic forum in the far eastern Russian city of Vladivostok. Putin said this would “increase the stability of banks’ servicing of export and import operations while there are ongoing risks on global markets”.
Russia has faced ever harsher sanctions since angering the West and Kiev by annexing Crimea in 2014 and backing separatist rebels in eastern Ukraine.
In recent months the United States (US) has imposed more sanctions over alleged Russian interference in the presidential elections and the poisoning of ex-double agent Sergei Skripal and his daughter in Britain.
Since the latest round of US sanctions and under the threat of further measures, the ruble has dropped sharply in value against the dollar and euro.
The yuan has fallen steadily against the dollar in recent months.
Putin in July said that “political disputes” were “damaging the dollar as the global reserve currency”.
He said that the Chinese yuan was meanwhile “acquiring the qualities” of a reserve currency.
China seeking sanctions against US in anti-dumping case: WTO
China is planning to ask the World Trade Organisation (WTO) next week for permission to impose sanctions on the United States (US) over anti-dumping practices taken against some Chinese products.
The WTO said on Tuesday that a special meeting of its Dispute Settlement Body would be convened on September 21 to discuss developments in a five-year-old trade dispute between the world’s top two economies.
The case dates back to December 2013, when China filed a dispute against the US, taking issue with the way Washington assesses whether exports have been “dumped” at unfairly low prices onto the American market.
The use of anti-dumping duties are permitted under international trade rules as long as they adhere to strict conditions, and disputes over their use are often brought before the WTO’s DSB.
In this specific case, China alleged that Washington, in violation of WTO rules, was continuing a practice known as “zeroing”, which calculates the price of imports compared to the normal value in the US to determine predatory pricing.
In October 2016, a panel of WTO experts found largely in China’s favour in the case, including on the issue of “zeroing”.
The US, which has repeatedly lost cases before the WTO over its calculation method, said in June last year that it would implement the panel’s recommendations within a “reasonable” time frame. —afp
This past January, the DSB set an August 22 deadline for Washington to bring its practices in line with the 2016 ruling.
According to WTO rules, the plaintiff in such cases can request permission to impose sanctions if the parties have not reached agreement on a satisfactory compensation within 20 days of the WTO deadline.
Washington will nonetheless still have the right to oppose any sanction decision, opening the way for a lengthy arbitration process that could take months to settle.