Dumping: US attacks Chinese subsidies

Washington is poised to file a complaint with the WTO against China. It is particularly targeting China's use of "demonstration bases", including within the textile and apparel sector, which enjoy government export subsidies.

The US executive has indicated that it has filed a case against China with the World Trade Organization. The timing is deliberate, since the Obama administration would soon like to finish off negotiations of the Trans-Pacific Partnership, which will affect 12 countries, including two world powers.

At a time when numerous US production facilities are being relocated, Washington intends not to repeat the mistakes of its last agreement with China, which has been blamed by unions and professionals as a reason for many past relocations. Barack Obama will likely remain 'inflexible' in terms of protecting American jobs, according to the Secretary of State.

To demonstrate the impact of Chinese subsidies on trade, the United States has offered the textile industry as an example. In 2012, only 16 out of 40 demonstration bases in the sector made up less than 14% of China's textile exports. In total, there are some 179 such bases scattered throughout China that will be in the crosshairs of the Obama administration.

Dumping: US attacks Chinese subsidies

See also