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Blowing hot over policy
By Richard Fu |
December 24, 2010, Friday
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Print Edition
Print Edition
CHINA yesterday defended its wind power policy after the United States complained to the World Trade Organization that the Chinese government is supporting the domestic industry unfairly.
The Ministry of Commerce, meanwhile, said China will conscientiously study the US request for talks in accordance with WTO dispute settlement procedures, and China will reserve its due rights.
The Obama administration on Wednesday filed a case against China with the WTO, accusing the country of illegally subsidizing the production of wind power equipment, and requested consultations.
"China's wind power measures are helping save energy and protect the environment," the ministry said in a statement, adding that China's policies are in accordance with WTO principles.
The Americans say China appears to provide subsidies that are prohibited under WTO rules because the grants awarded under the program, known as the Special Fund for Wind Power Manufacturing, seem to be contingent on Chinese wind power equipment manufacturers using parts and components made in China rather than foreign-made ones.
The US estimates that grants provided under this program since 2008 could total several hundred million dollars.
"These subsidies effectively operate as a barrier to US exports to China," Ron Kirk, the US trade representative, said in a statement.
The Ministry of Commerce, meanwhile, said China will conscientiously study the US request for talks in accordance with WTO dispute settlement procedures, and China will reserve its due rights.
The Obama administration on Wednesday filed a case against China with the WTO, accusing the country of illegally subsidizing the production of wind power equipment, and requested consultations.
"China's wind power measures are helping save energy and protect the environment," the ministry said in a statement, adding that China's policies are in accordance with WTO principles.
The Americans say China appears to provide subsidies that are prohibited under WTO rules because the grants awarded under the program, known as the Special Fund for Wind Power Manufacturing, seem to be contingent on Chinese wind power equipment manufacturers using parts and components made in China rather than foreign-made ones.
The US estimates that grants provided under this program since 2008 could total several hundred million dollars.
"These subsidies effectively operate as a barrier to US exports to China," Ron Kirk, the US trade representative, said in a statement.
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