China agrees to cancel export subsidies for “brand-name products” involving textiles and clothing

The U.S. Trade Representative said on Friday that China has agreed to cancel various export subsidies for its famous brand products and will not confront the United States tit for tat at the International Trade Organization (WTO).
The U.S. Trade Representative said that these subsidies involve a variety of Chinese products sold globally, including household appliances, textiles and clothing, light industrial products, agricultural products and food, metal and chemical products, and pharmaceuticals.
“Given the scope of China’s industrial export subsidy policies, this result is a victory for all types of U.S. manufacturing industries and their employees.” U.S. Trade Representative Kirk said in a statement about an agreement signed by the two countries. pointed out in.
The Bush administration of the United States launched a lawsuit at the WTO in December 2008, claiming that China’s governments at all levels, from central to local levels, provide subsidies for the country’s “well-known brand” goods exported to the world.
So far, the U.S. government has filed a total of 8 trade lawsuits against the Chinese government, 4 of which have been resolved with China on its own without waiting for a ruling by the WTO Arbitration Commission.
“In our view, this represents a pragmatic attitude of solving problems as they are discovered, at least in some cases.” A U.S. trade official who requested anonymity said.
The U.S.’s huge trade deficit with China remains a sensitive point in U.S.-China relations, but with the global economic downturn, the deficit has narrowed since 2009.
U.S. trade officials said it was difficult to accurately estimate the amount of subsidies. But they said they found more than 90 different government initiatives to provide financial support for Chinese exports that were inconsistent with WTO principles.
These subsidy projects include “Export Famous Brands”, “China International Trade Brands”, “Chinese Famous Brand Products” established by the central government, as well as subsidy projects launched by provincial and municipal governments.