Source: CCTV.com

02-05-2007 13:59

The Chinese Ministry of Commerce has expressed regret after the United States filed a trade case with the World Trade Organization against what it calls China's industrial subsidies. China has steadfastly maintained that it's meeting all its obligations to the WTO.

Washington alleges that China is subsidizing its industries to encourage exports to the US, thus causing the huge US trade deficit with China.

Of course, complaints about China's subsidies policies are nothing new. Three months ago, the US, along with the European Union, grumbled that China's subsidies report to the WTO lacked transparency. China refuted the claim then, asserting that it has fulfilled all its WTO duties on subsidies.

This latest grievance from the US is setting the stage for a 60-day consultation, which is the first step in the dispute settlement procedure. If no agreement is reached by the end, a WTO hearing panel will be held.

The case lodged by the US is targeting such Chinese industries as steel, computers, and clothing.

Going to the law is certainly the last resort. China has emphasized repeatedly that trade disputes should be resolved through friendly negotiations.

 

Editor:Du Xiaodan