The long list of trade disputes between the United States and China has lengthened further, with Washington asking the WTO to examine subsidies to the Chinese wind power sector. Just weeks before President Hu Jintao's January visit to the United States, the US government said Wednesday it had asked the World Trade Organisation to deal with allegedly illegal subsidies that favour Chinese manufacturing firms.
The United States alleges China offers multi-million-dollar grants to only companies making turbines and other equipment with Chinese parts, a violation of trade rules. "China appears to provide subsidies that are prohibited under WTO rules," US trade officials said in a statement announcing their request for WTO arbitration. The request means that representatives from Beijing and Washington will have to discuss a solution within the WTO.
If no agreed solution is found, the United States can ask the World Trade Organisation to move toward sanctions. Chinese officials Thursday attacked the move, with the Commerce Ministry saying it was "highly concerned" with the development, and insisting that China's approach to the field "comply with WTO rules." The claim comes as the two economic superpowers face off over a range of export issues from tires to beef to currency levels, and amid anger in Washington that its exports are being stiffed.
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