US Challenges Wide-Ranging Chinese Export Subsidies

The Obama administration is challenging Chinese export subsidies across a wide-range of industries at the World Trade Organization, said U.S. Trade Representative Michael Froman and several lawmakers on Feb. 11. The U.S. asked China for WTO consultations over the subsidies, which are being provided to producers and exporters in the textile and shrimp export industries, among others, said lawmakers on Feb. 11 (here). If those talks fail, the U.S. may pursue a dispute settlement panel.

The challenge targets Chinese state assistance through its Demonstration Bases-Common Service Platform program, which provides free services through cash grants, and other incentives, said USTR. “China appears to be providing export subsidies under the Demonstration Bases-Common Service Platform program,” the agency said. “Export subsidies provide an unfair advantage to a vast array of Chinese exporters and are expressly prohibited under WTO rules. Due to China’s lack of transparency, it is difficult to assess the exact extent of the subsidies provided to enterprises in each of the 179 Demonstration Bases in China.” The National Council of Textile Organizations also praised the administration’s decision to challenge in an emailed statement.