US-China Business Council Praises China for Its Ending of Subsidies Violations
The subsidies mainly took the form of tax rebate incentives and were offered to Chinese export manufacturers. Some of these manufacturers, however, were foreign-based multinational corporations, including some based in the United States.
"The resolution of this case demonstrates that engagement with China, through bilateral discussion and through multilateral forums such as the WTO, successfully advances the interests of U.S. companies and workers...We look forward to continued progress at the upcoming bilateral talks in Beijing next month," said John Frisbie, president of the US-China Business Council.
China has agreed to eliminate the subsidizing completely and signed a memorandum of understanding with the United States in Geneva. That kind of subsidizing is illegal by WTO standards.
There were also subsidies given to Chinese companies that agreed to buy Chinese goods instead of imports.
United States Trade Representative Susan Schwab told the press, "I am very pleased that today we have been able to sign an agreement with China that should lead to full elimination of these prohibited subsidies."
Schwab also took a stab at the majority Party in Congress for its unrelenting criticisms of the White House's handling of Beijing-Washington relations, saying that the members of Congress with whom she had spoken expressed their appreciation for results instead of rhetoric. This is the second time the Bush Administration has won a lawsuit against China in a WTO court.
China is pressuring the United States to end its restrictions on Chinese purchases of high-tech products and to allow that nation to make use of some of its vast amounts of capital reserves to invest in United States corporations without any interference from the Congress.
Many members of Congress are saying the proposed "interference policies" are inimical to fair trade. China's huge trade surplus with the United States that it enjoyed through most of this year prompted lobbying efforts by small U.S. manufacturers and labor unions.
Majority party members of Congress still insist that China needs to be pressured by the White House to get rid of its trade barriers that affect U.S. exports to that nation, cease from devaluing the Yuan, get better at monitoring for piracy, and get stricter on its inspections for potential use of hazardous materials in its exports, most notably lead paint.
Original Newswire Source:
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Published by Brant McLaughlin
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1 Comments
Post a Commentthe rise of Chinese economic power is changing global financial and trade norm and all other relevant things. This topic is certainly interesting, but it lacks insights. The best books on the inside story of today's China are authored by a Chinese journalist named George Zhibin Gu: China's global reach; and, China and the new world order. Both books offer the most creative insights and analysis on what is really inside China and its evolving relations with the world.