China to dismantle export subsidy program

China has agreed to stop export subsidies that provided an estimated $1 billion over three years to companies that make specialty chemicals, advanced materials and metals, and medical products, among other goods. China had provided cash grants and free or discounted services to Chinese firms, enabling them to undercut U.S. rivals on price, the Obama Administration says. The new agreement comes a year after the U.S. charged that China’s incentives violated international trade rules established by the World Trade Organization (WTO). U.S. Trade Representative Michael B. Froman says the deal will benefit Americans employed in the affected sectors. Several U.S. Democratic lawmakers are praising the settlement. “We must continue to be vigilant in monitoring China’s unfair trade practices and in calling for WTO arbitration to end any violations of our international trade standards agreements,” says Rep. David Price (D-N.C.).