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Economics & Trade

Mofcom contests US trade suit

The Ministry of Commerce said that China respects WTO rules and would cooperate with the international body over a suit filed against China by the United States, Reuters reported. A statement on the ministry’s website said "China has all along respected the rules of the WTO, and opposes trade protectionism. China will deal with (the suit) in accordance with WTO rules." The US hopes to use the suit to stop Chinese government subsidy programs in sectors including household electronics, textiles, light manufacturing, metals, chemicals, and medicine and health products. Programs benefiting exporters include cash grant rewards, preferential loans and payments to lower the cost of export credit insurance, the US Trade Representative’s Office said. China raised tax rebates in November and December to help exporters after cutting the rebates earlier in the year.

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