China will meet with the United States later this month looking to tackle industrial subsidy complaints made by Washington, according to the Ministry of Commerce.

 

The US government filed a complaint on February 2 with the World Trade Organization, targeting subsidies for domestic industries, claiming this harms competing US manufacturers.

 

The complaints focus on state subsidies for steel, paper, information technology and other industries, which would allow China to export goods on the cheap whilst removing US opportunities to compete on level ground on international markets.

 

"China has accepted the US request for consultation and the two sides will launch talks in Geneva in the last 10 days of this month," the ministry told China Daily yesterday.

 

Mexico, Japan, the European Union and Australia will also participate in the consultations as third-parties.

 

The ministry also added that China had accepted a request for separate consultations filed by Mexico, to be held alongside the Sino-US talks.

 

Chinese experts claim that the US has not backed up its doubts as to China's industrial subsidies with sufficient evidence, and the United States along with other developed countries had granted much higher subsidies, such as export tax rebates, to domestic industries.

 

According to WTO regulations, a period of 60 days will be allocated for the two sides to find common ground. Should this fail, the United States may appeal to a WTO dispute settlement panel.

 

Since China acceded to the WTO in 2001, the US has referred China to the world trade body three times.  

 

US Trade Representative Susan Schwab also revealed a further case may be pursued by the US relating to piracy and the counterfeiting of American goods in China. This was delayed last year after China indicated it would do more to allay American fears.

 

(China Daily March 7, 2007)