The Office of the U.S. Trade Representative
announced June 7 that China has
ended certain wind power equipment subsidies that the U.S. had
challenged at the World Trade Organization. USTR notes
that this is the third successful WTO challenge the U.S. has
brought against Chinese government subsidies and that in each case China agreed
to eliminate the subsidies following formal consultations.
China’s Special Fund for Wind Power Equipment
Manufacturing subsidies took the form of grants to Chinese wind turbine
manufacturers that agreed to use key parts and components made in China rather
than purchasing imports. The U.S.
estimated that the grants provided to Chinese companies since 2008 could have
totaled several hundred million dollars. USTR states
that China never notified the WTO of these subsidies (or those involved in the
two prior cases) despite an obligation to do so under WTO rules and that China
has in fact submitted only one subsidies notification since becoming a WTO
member in December 2001. Read more here.
