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 holding their baby and reading about state and local tax updates.
November 28, 2023

State and local tax advisor: November 2023

Article 18 min read
Business professional learning about increased IRS audits on ERC claims.
November 21, 2023

Increased IRS audits focused on ERC claims: What to know and how to prepare

Article 8 min read
State and local tax professionals discuss challenges with pass-through entity (PTE) tax elections.
November 16, 2023

Pass-through entity taxes present 5 main stumbling blocks

In The News 4 min read