Question
To limit the number of cars on city streets, Shanghai, China, set up a system under which drivers could only acquire automobile license plates through
To limit the number of cars on city streets, Shanghai, China, set up a system under which drivers could only acquire automobile license plates through a monthly auction. But Shanghai ran two different auctions: One for foreign-made cars, in which the government limited the number of license plates to 30 a month and set a high minimum bid, and another auction for Chinese cars, in which 3,000 license plates a month were available with no minimum bid. The United States complained that Shanghai's system had a direct effect on its imports. Is China in violation of WTO principles?
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