People’s Daily recently reported that the United States just filed a WTO (World Trade Organization) case against China for subsidizing eight categories of export companies. These included textiles, clothing and shoes, metal materials, light industry and specialized chemical products, medicine, construction materials, and agricultural products. The Chinese government provided funding via the public service platform to companies located in 179 industrial parks. The U.S. filing claimed that the Chinese government provided $US one billion worth of subsidies in the period from 2010 to 2012. The public data released on the Chinese Ministry of Commerce official website supported some of the numbers. Before this new filing, there had been 24 WTO filings between the United States and China. The U.S. had initiated 15 of them. Some analysts pointed out that this latest conflict occurred at the very moment when President Obama was asking the U.S. Congress for the power to fast track international trade negotiations. However, the WTO investigation may discover that this type of “hidden subsidy” has been used widely by governments all over the world, including the U.S. government.
Source: People’s Daily, February 13, 2015