U.S. Challenges China Over Export Subsidies

The Obama Administration is challenging China’s export subsidy program for specialty chemicals and products in a half-dozen other industries, charging that the support is illegal under international trade rules. In a complaint filed with the World Trade Organization, the U.S. accused China of providing almost $1 billion in illegal subsidies from 2010 to 2012 to specialty chemical manufacturers, advanced materials and metals companies, textile and clothing makers, light industrial firms, medical product makers, and agricultural firms. “In our view, this program violates the commitment China made when it joined the WTO not to provide certain export subsidies,” says U.S. Trade Representative Michael B. Froman. China, the world’s second-largest economy after the U.S., joined the WTO in 2001 and promised to open its markets and honor agreements that restrict government-backed assistance. China’s Ministry of Commerce disputes the claim that it supports the nation’s export industries in an unfair manner. It says the policies are consistent with WTO rules and promote the development of foreign trade.