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China says WTO no place for solving trade disputes

Economic disputes between China with Taiwan should not be resolved within the WTO after the two join, one of Beijing's Taiwan affairs officials said yesterday.

"There are some issues which do not need to be resolved under the framework of the WTO," said Zhang Mingqing (張銘清), spokesman for China's Taiwan Affairs Office.

"For example, economic and trade issues between the two sides and the issue of [direct] links are China's internal affairs," he told a news conference. "The two sides can negotiate under the principle of `one China.'"

His remarks appeared to dash hopes that WTO membership would push China and Taiwan into talks based on international rules over testy issues including opening direct trade, transport and postal links.

If the two, as expected, are to join the WTO at the November meeting in Doha, Qatar, they will be subscribing to a free-trade system which generally bars unfair barriers and discrimination.

Under WTO rules, if a member perceives a violation of the most-favoured-nation principle, it can mount a challenge through the WTO's dispute-settlement system. If its complaint is upheld, it can win redress.

But China's spokesman said those rules did not necessarily apply to Taiwan.

Zhang indicated that preferential treatment for some Taiwan businesses in China was likely to be phased out once the two sides joined the WTO.

"I think as a basic principle we will act according to WTO regulations," Zhang said.

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