The free kick behind China's exports clout

If Beijing is to achieve its much-touted rebalancing, its controversial exporter subsidies must come to an end – bad news for consumers in the rest of the world but positive for China's domestic consumption.

On 17 September last year, the US requested consultations with China concerning a wide range of export-contingent measures –grants, tax preferences and interest rate subsidies, totalling at least $1 billion –in apparent violation of the WTO’s Agreement on Subsidies and Countervailing Measures, China’s accession protocol and article XVI of the GATT. The EU joined the consultations shortly after on 28 September.


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