China fails to block US paper tariffs

The United States Court of International Trade has ruled that the US Commerce Department has the authority to consider penalties in disputes over government subsidies, AP reported. The case, carefully monitored by a number of industries, was brought forward by NewPage Corp. and focused on Chinese paper products; it could set a precedent that would expand the range of penalties on Chinese imports. Commerce Secretary Carlos Gutierrez is expected to announce Friday whether the government believes Chinese producers are improperly subsidized by the government. A US government move to impose subsidies would reverse two decades of precedent: until now the US has considered China a non-market economy and has refused cases of government involvement in subsidies. In a separate development, China's ambassador to the US said Beijing is willing to resolve trade rows and take a "global" view of economic relations, the South China Morning Post reported. "I hope the US Congress sees such problems within the context of the region and globalization," said Ambassador Zhou Wenzong.