US accused as China blasts trade complaint
By Joe McDonald |
October 18, 2010, Monday
|
Print Edition
Print Edition
A SENIOR Chinese official has rejected a United States trade complaint about China's clean energy policy and said yesterday that Washington might be improperly supporting its own industry.
The US government said last Friday it would investigate complaints by a labor union that China unfairly subsidizes its producers of wind and solar equipment.
"Chinese subsidies to new energy companies are much smaller than those of the US government," said Zhang Guobao, director of the State Council's National Energy Administration, at a news conference in Beijing. "If the US government can subsidize companies, then why can't we?"
Zhang said Washington might be improperly supporting its own industry. He cited rules on the spending of US government money for solar energy that require equipment to be domestically made.
"If what I said is right, it is the United States that should be sued, not us," he said.
The unusually prompt, high-level Chinese response reflects China's growing confidence in rejecting US pressure over trade and other issues, as well as its determination to develop high-tech industry.
The Chinese government is aggressively promoting wind, solar and other renewable energy.
In a statement on Saturday, the Commerce Ministry said Washington's complaint signals the US does not support China's efforts at improving the environment.
Zhang said 50 percent of clean energy equipment installed in China last year was imported and suppliers such as General Electric Co had made substantial sales.
"Once we reveal these facts to the world, the complaint will be shown to be groundless, and all the American subsidies will be exposed," he said.
If the US investigation finds the labor union complaint true, the Obama administration could sue China in the World Trade Organization.
A favorable WTO ruling would allow the United States to impose penalties on Chinese imports.
The US government said last Friday it would investigate complaints by a labor union that China unfairly subsidizes its producers of wind and solar equipment.
"Chinese subsidies to new energy companies are much smaller than those of the US government," said Zhang Guobao, director of the State Council's National Energy Administration, at a news conference in Beijing. "If the US government can subsidize companies, then why can't we?"
Zhang said Washington might be improperly supporting its own industry. He cited rules on the spending of US government money for solar energy that require equipment to be domestically made.
"If what I said is right, it is the United States that should be sued, not us," he said.
The unusually prompt, high-level Chinese response reflects China's growing confidence in rejecting US pressure over trade and other issues, as well as its determination to develop high-tech industry.
The Chinese government is aggressively promoting wind, solar and other renewable energy.
In a statement on Saturday, the Commerce Ministry said Washington's complaint signals the US does not support China's efforts at improving the environment.
Zhang said 50 percent of clean energy equipment installed in China last year was imported and suppliers such as General Electric Co had made substantial sales.
"Once we reveal these facts to the world, the complaint will be shown to be groundless, and all the American subsidies will be exposed," he said.
If the US investigation finds the labor union complaint true, the Obama administration could sue China in the World Trade Organization.
A favorable WTO ruling would allow the United States to impose penalties on Chinese imports.
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