The US has launched a challenge to what it says are illegal Chinese export subsidies for sectors ranging from agriculture to medical goods, attacking Beijing at a time when President Barack Obama is seeking support from Congress for an aggressive trade agenda.
Washington said yesterday it had requested formal talks at the World Trade Organisation with China over its use of “demonstration bases”, or special government-supported industrial clusters. The request is the first step in bringing a case at the WTO.
The move against China comes as the Obama administration is pressing for Congress to grant it “fast-track” powers, or Trade Promotion Authority.
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