US files WTO complaint against China

The US became the first country to file a complaint against China at the World Trade Organization (WTO), alleging a mainland tax rebate for domestically produced semiconductors violated the organization's trade rules. US Trade Representative Robert Zoellick said in a statement that "US manufacturers of semiconductors and other products have a right to compete on a level playing field with Chinese firms." China has dismissed the US complaint as "based on a misunderstanding". The US and China must engage in discussions for at least two months before a WTO committee will hear the complaint, under organization rules. The US filing claimed that China refunds up to 14% of the tax on semiconductors designed and produced on the mainland.