labels: world trade organisation, trade
US takes China to WTO over industrial subsidiesnews
03 February 2007

Beijing: The United States has taken China to the World Trade Organisation (WTO), formally seeking a consultation process over Beijing's industrial subsidies, which the US says deny a level-playing field to American companies.

The US government has filed a complaint with the WTO, alleging that China is using government support to help its companies compete in global markets, thus creating an unfair playing field.

By filing the complaint, the United States asked for a consultation process with China in Geneva, which is the first stage of the dispute settlement procedure of the world trade body, Xinhua news agency reported.

Charges brought before the WTO for consultation usually last two months once they start. If the consultation process fails, a WTO panel of experts is formed to address the dispute.

US Trade Representative Susan Schwab said in Washington that the US sought to level the playing field to allow US manufacturers to compete fairly with Chinese firms.

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US takes China to WTO over industrial subsidies