China, US settle WTO case

China and the US have settled a WTO case by signing a memorandum of understanding, the Wall Street Journal reported. The joint statement, which includes steps for the Chinese government to take before the end of the year to eliminate subsidies, suspends a US complaint filed with the WTO about the Chinese government's alleged subsidies across a range of subsidies that boosted exports. The US had claimed that subsidized companies accounted for 60% of China's manufacturing exports to the US in 2005. The suspension comes ahead of the bilateral Strategic Economic Dialog next month in Beijing, though a US official said the case could be revived if China fails to meet its commitments.