China's Ministry of Commerce has expressed regret over the request from the European Union, the United States and Canada to set up a WTO dispute settlement panel over auto parts.

 

China's regulations on the import of auto parts aimed to prevent tax evasion by companies who imported whole cars as spare parts to avoid higher tariff rates, said ministry spokesman Chong Quan.

 

Cong said the regulation, designed to crack down on illegal assembly, protect the interest of customers and comply with WTO rules.

 

China has showed great sincerity in clarifying the facts and its views during consultations with the EU and the United States, said Chong.

 

(Xinhua News Agency September 18, 2006)