The United States sues China for export subsidies in textile, apparel and other industries

The U.S. government has opened a new “front” for trade prosecutions against China. This time the complaint against the WTO is that the Chinese government has provided textiles, clothing and footwear, advanced materials and metal materials, Export subsidies should not be given to enterprises in eight major industries: light industry, specialty chemicals, pharmaceutical products, hardware and building materials, and agriculture.
The Wall Street Journal reported that the U.S. complaint comes at a time when the U.S. is seeking to conclude the Trans-Pacific Strategic Economic Partnership (TPP) with 12 countries other than China. The TPP will help ensure that China will not compete with the rapidly developing Asia-Pacific economy. District formulates trade rules. Reuters reported that China and the United States had previously filed 24 trade complaints, 15 of which were initiated by the United States.
U.S. Trade Representative Mike Froman said yesterday that he is applying to the WTO to negotiate on the Chinese government’s hidden project that allows local officials to subsidize small export companies through public service platforms. The project covers nearly 200 “demonstration bases” across China.
The above-mentioned foreign media reports quoted U.S. officials as saying that although it is difficult to determine the amount of relevant subsidies, China has apparently provided discounted or free services to exporters and other suppliers located in the demonstration base through this platform, which is equivalent to subsidies within three years. About $1 billion. The report also mentioned that Forman said in the statement:
“Whether they are free or provided at a discount, all these services affect fair competition.”
“This project violates the commitments China made when it joined the WTO. This policy hurts American workers, farmers, ranchers, and businesses, as well as everyone who follows the rules and wants to compete fairly with hard work and product quality. ”
The above-mentioned Wall Street Journal report quoted data published on the Ministry of Commerce website as saying that the demonstration base in eastern Anhui Province provided subsidies equivalent to 10% of the cost of the project applying for subsidies. Such subsidies can be up to RMB 1 million.