China will meet with the United States later this month looking
to tackle industrial subsidy complaints made by Washington,
according to the Ministry of Commerce.
The US government filed a complaint on February 2 with the World
Trade Organization, targeting subsidies for domestic industries,
claiming this harms competing US manufacturers.
The complaints focus on state subsidies for steel, paper,
information technology and other industries, which would allow
China to export goods on the cheap whilst removing US opportunities
to compete on level ground on international markets.
"China has accepted the US request for consultation and the two
sides will launch talks in Geneva in the last 10 days of this
month," the ministry told China Daily yesterday.
Mexico, Japan, the European Union and Australia will also
participate in the consultations as third-parties.
The ministry also added that China had accepted a request for
separate consultations filed by Mexico, to be held alongside the
Sino-US talks.
Chinese experts claim that the US has not backed up its doubts
as to China's industrial subsidies with sufficient evidence, and
the United States along with other developed countries had granted
much higher subsidies, such as export tax rebates, to domestic
industries.
According to WTO regulations, a period of 60 days will be
allocated for the two sides to find common ground. Should this
fail, the United States may appeal to a WTO dispute settlement
panel.
Since China acceded to the WTO in 2001, the US has referred
China to the world trade body three times. ?
US Trade Representative Susan Schwab also revealed a further
case may be pursued by the US relating to piracy and the
counterfeiting of American goods in China. This was delayed last
year after China indicated it would do more to allay American
fears.
(China Daily March 7, 2007)