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United States files WTO case against China over prohibited subsidies
07 Feb '07
3 min read
Several of the subsidy programs at issue appear to grant export subsidies, which provide incentives for foreign investors in China and their Chinese partners to export to the United States and other markets. These subsidies offer significant benefits and are available for all products made in China, including, for example, steel, wood, paper, and other manufactured products.
The companies targeted for many of these subsidies, i.e., companies with some foreign participation, accounted for nearly 60 percent of China's exports of manufactured goods in 2005, according to a WTO report. Other subsidy programs at issue provide incentives for companies in China to purchase domestic equipment and accessories, instead of buying from U.S. exporters.
By subsidizing Chinese exports to the United States and denying U.S. exporters a fair opportunity to compete in China, these subsidy programs unfairly impact U.S. manufacturers and their workers. Elimination of the subsidies will help level the playing field for U.S.-based manufacturers and, in particular, for America's small and medium-sized businesses across a range of industries.
The subsidies being challenged also are inconsistent with clearly stated Chinese policies seeking to rebalance China's economy with greater emphasis on domestic consumption-led growth rather than export-led growth, and to promote the efficiency of China's domestic manufacturers.
Click here to read more:
The companies targeted for many of these subsidies, i.e., companies with some foreign participation, accounted for nearly 60 percent of China's exports of manufactured goods in 2005, according to a WTO report. Other subsidy programs at issue provide incentives for companies in China to purchase domestic equipment and accessories, instead of buying from U.S. exporters.
By subsidizing Chinese exports to the United States and denying U.S. exporters a fair opportunity to compete in China, these subsidy programs unfairly impact U.S. manufacturers and their workers. Elimination of the subsidies will help level the playing field for U.S.-based manufacturers and, in particular, for America's small and medium-sized businesses across a range of industries.
The subsidies being challenged also are inconsistent with clearly stated Chinese policies seeking to rebalance China's economy with greater emphasis on domestic consumption-led growth rather than export-led growth, and to promote the efficiency of China's domestic manufacturers.
Click here to read more:
United States Trade Representative, USA
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