Skip to Content

China eliminates prohibited export subsidies, leveling playing field

May 12, 2016 Blog 1 min read
The Chinese government has recognized that the World Trade Organization prohibits certain export subsidies that have been provided to Chinese businesses.

As a result of a complaint filed by the United States, the Chinese government now recognizes that export subsiding is prohibited by the World Trade Organization (WTO). On April 14, 2016, China and the U.S. signed an agreement to eliminate the subsidizing of Chinese companies that meet certain export performance targets.

According to the Office of the United States Trade Representative, prior to the recently signed agreement, China was subsidizing services to 179 groups of Chinese companies. The elimination of these subsidies levels the playing field, allowing companies across the globe to better compete with China exports.

As part of the agreement, China will withdraw central and sub-central funding for subsidized services and remove export-contingent performance targets from Chinese companies.

For more information, please visit https://ustr.gov >>

Related Thinking

Business professional looking at tablet computer at nighttime.
February 2, 2023

State nexus questions persist despite internet tax guidance

Article 5 min read
View of the U.S. Capitol building during the day.
January 27, 2023

State and local tax advisor: January 2023

Article 20 min read
Business professional checking their phone.
January 27, 2023

Taxation of pooled franchise advertising funds

Article 2 min read