China met with trade representatives from US and Mexico on
Tuesday following their complaint about Chinese industrial
subsidies, the Chinese Mission to the World Trade Organization
(WTO) revealed.
Hosted at WTO headquarters in Geneva, the consultations
apparently "proved to be helpful and contributed to the better
understanding of the concerns of all parties concerned," a
statement released by the mission revealed.
During the meeting, the Chinese side provided a sincere
introduction to?its standpoint and clarified the taxation
measures decried by the US and Mexico as creating unfair trade
subsides, according to the statement.
"It is evident from the consultations that the complaining
parties have misunderstandings toward Chinese foreign investment
and taxation regimes," it said, adding that in reality, certain
so-called "subsidies" programs no longer existed or were irrelevant
in China.
The Chinese Mission also shed light on China's active measures
to reform its?corporate income taxation regime, including some
of "subsidies" programs that have been a thorn in the side of the
US. It hailed the new?Corporate Income Tax Law, passed last
week by the National People's Congress, as a strong example of such
reform.
The statement further insisted that China "always respects its
commitments of accession to the WTO and all WTO agreements."
Calling for a balanced trade playing field, the statement
further called upon all WTO members, particularly more developed
countries, to lead the way in making trade-distorting subsidies,
especially those for agriculture, a thing of the past.
This formed the first round of consultations held since the US
fielded its Chinese subsidies case to the WTO in early February, a
complaint seconded by Mexico.
Overseeing Tuesday's consultations as third parties were the EU,
Japan and Australia, who stood in for this initial stage of the
WTO's dispute settlement procedures. Should the talks fail in the
end, the complaining parties may request a WTO panel of experts to
resolve the dispute through independent investigation.
(Xinhua News Agency March 21, 2007)