The World Trade Organization (WTO) launched an expert panel on
Friday to probe whether China is illegally subsidizing its
industrial exports as alleged by the United States and Mexico.
The United States first filed the case to the WTO in February
and later was joined by Mexico. The two countries complained that
China was using tax breaks and other incentives to "subsidize" its
exports, which might violate WTO regulations.
At Friday's meeting of the WTO's Dispute Settlement Body, China
again defended its position, saying its tax measures mentioned by
the United States and Mexico in the case are consistent with WTO
regulations.
It is "very disappointing and deeply regrettable" that the
United States and Mexico pursue this matter further by requesting
the establishment of the panel for a second time, the Chinese
delegation said in a statement.
The United States and Mexico had requested for a WTO panel on
the dispute last month, but was rejected by China according to
related WTO regulations.
"In the panel process, China will defend its position and
interests and remain confident that relevant measures of China are
consistent with its WTO obligations," the statement added.
In a separated case on Friday, China blocked an initial request
by the United States for a WTO panel to investigate China's
protection and enforcement of intellectual property rights
(IPR).
"China consistently spares no efforts to enforce its IPR
legislation with great success acknowledged by the international
community," the Chinese delegation said in a statement.
"It is regrettable for China to see that the United States has
chosen to request the establishment of a panel in spite of China's
efforts to settle this dispute through consultations."
The United States has complained that China is not doing enough
to crack down on counterfeit and piracy.
(Xinhua News Agency September 1, 2007)
