China has expressed regret over the United States formally requesting consultations with China over its different taxing of foreign and domestically produced aircraft.
The Ministry of Commerce said in a statement on Wednesday that China has always abided by World Trade Organization rules on aviation manufacturing development.
Earlier in the day, U.S. Trade Representative Michael Froman said China imposes 17 percent VAT on imported aircraft weighing under 25 metric tons while exempting such aircraft made in China from the tax.
Froman said America has launched dispute settlement proceedings at the WTO by requesting consultations with China.
The MOC said China has received the request and will handle the issue according to WTO dispute settlement procedures.