Mexico files WTO dispute over Chinese textile subsidies

The wide-ranging complaint cites exemptions from income tax, value-added tax and municipal taxes; discounts on loans, land rights and electricity prices; support for the cotton sector; and cash payments from government agencies.

By launching the legal process, Mexico has triggered a 60-day window for China to resolve the dispute by giving a satisfactory explanation or otherwise meeting its concerns. After that, Mexico could ask the WTO to adjudicate on the case in the hope of forcing China to change its laws.