US files WTO case against China over subsidies

The United States has requested the World Trade Organization (WTO) to establish a dispute settlement panel to deal with China's industry subsidies.

Sean Spicer, spokesman for the US Trade Representative said that the two rounds of WTO consultations with China have not resolved US concern "about China's apparent use of trade-distorting subsidies that it pledged to eliminate upon joining the WTO," China Today reported.

He acknowledged that China has taken a positive step by repealing one of the subsidy programs that the US questioned, but said that more has to be done.

In February, Washington requested WTO consultations with China over the prohibited subsidies, but both sides failed to resolve the issue after two months. China's Ministry of Commerce said it regretted the US move since the two parties have kept bilateral contact over the issue, China Daily said.

A WTO panel of experts will be convened to handle the dispute since the initial consultations fell through.

The dispute settlement arm of the WTO will consider the US request for a panel at its next meeting on July 24.

The US is under pressure from its lawmakers to address the growing trade deficit with China and Washington has challenged Beijing on a variety of trade fronts.

In April, the US filed a complaint with the WTO against China over intellectual property rights. It has also banded with the EU and Canada to complain about China's tariff on auto parts.

Spicer said that the US will pursue the WTO process to enforce their right if China cannot assure them of complete corrective action.