The US has launched a new case against China at the World Trade Organization (WTO) over Beijing’s alleged unfair subsidies for some export businesses.
China’s subsidy program for industries such as textiles, apparel and footwear, advanced metals, specialty chemicals, medical products and agriculture goes against WTO rules, Washington says.
In the case filed Wednesday, US trade representative Michael Froman said his office is requesting WTO consultations over a program in China that allows local officials to subsidize smaller exporters through “common-service platforms” at nearly 200 demonstration bases throughout the country.
US officials believe China may have provided around US$1 billion over three years to the suppliers that give discounted or free services to Chinese companies through the common service platforms, including to exporters located in the demonstration bases, the Wall street Journal reported.
“All of these services, provided free or at a discount, undermine fair competition,” Froman was quoted as saying.
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