China deplores US move to seek WTO consultation

Beijing: China has deplored the US decision to refer what it calls "illegal" industrial subsidies by China that hurt American businesses worldwide to the World Trade Organisation (WTO) for consultations.

A spokesman for the Chinese ministry of commerce said that it was a pity that the US had opted to refer China's industrial subsidies to WTO for consultation, as the two countries had kept bilateral contact over the issue all along.

He said that China was deliberating the consultation proposal from the United States.

The United States, on Friday, had formally asked for a consultation process at the WTO over China's industrial subsidies, which made Chinese goods cheaper in global markets. (See: US takes China to WTO over industrial subsidies)

The US complaint with the WTO alleges that China helps companies compete in world markets through support and subsidies, enabling them to export at very low rates.

By filing the complaint, it asked for a consultation process with China in Geneva, which is the first stage of the dispute settlement procedure of the world trade body.

"The case is important because we are seeking to level the playing field to allow US manufacturers to compete fairly with Chinese firms," US Trade Representative Susan Schwab said.

Schwab further said that while the intellectual property rights question remained up for dialogue with china, the time for talk on industrial subsidies had been "exhausted".