China Ministry Opposes Carbon-Tariff Policies

By CHUIN-WEI YAP

BEIJING -- China's central government reiterated its opposition to carbon tariff policies and said they could provoke a trade war, ratcheting up the rhetoric as lawmakers in the U.S. consider legislation to reduce greenhouse gases.
A statement Friday on the Web site of China's Ministry of Commerce cited proposals in some nations to level tariffs on imports from countries that don't limit greenhouse gases. Such policies violate World Trade Organization rules and are "not timely" ahead of global climate change talks later this year, spokesman Yao Jian said in the statement.
"China has consistently advocated that the international community faces climate change together, but some developed countries have advocated using carbon tariffs against imports," Mr. Yao said. "This violates basic WTO rules. It only pretends to protect the environment, but really it protects trade."
The statement didn't mention specific countries. But last week, the U.S. House of Representatives passed a bill that included such tariffs in order to level the playing field between U.S. industry and foreign competitors. China's export-reliant economy is extremely vulnerable to any moves such as a carbon tax that could raise the costs of its exports.
While acknowledging global warming as a threat, China insists rich developed countries that have produced the bulk of greenhouses should pay for their cleanup, even though China has now surpassed the U.S. as the world's leading greenhouse gas source.
The tariffs have drawn considerable public scrutiny. Last week, President Barack Obama said the House bill represents "an extraordinary first step," but said he had doubts about the tariff provision.
"To put out carbon tariff policies during the economic crisis and ahead of the annual climate change conference this year is not timely," Mr. Yao said. "It doesn't strengthen faith in the international community's cooperation against the crisis."
The United Nations Framework Convention on Climate Change is scheduled to meet in Copenhagen in December.—Shai Oster contributed to this article.
Write to Chuin-Wei Yap at chuin-wei.yap@dowjones.com