Earlier this year, the WTO ruled in favor of the U.S. on a complaint over Chinese government subsidies to its wind power industry for using domestically-produced components. In recent trade talks between the two countries, China has now agreed to allow U.S. companies to compete on a level playing field in the clean energy sector. From AP:
Chinese officials said foreign producers of new energy vehicles will be eligible for subsidies on an equal basis with local rivals, the U.S. Trade Representative’s office said in a statement. It said Beijing promised not to require them to help Chinese partners set up new brands or hand over technology — two conditions automakers worried might be imposed as a condition of being allowed to make or sell cars in China.
Access to China’s markets for high-tech goods is especially sensitive for the United States and other Western economies that want technology exports to shore up flagging economic growth and cut high unemployment.
“They intend to provide a fair and level playing field in those industries,’’ Bryson said after the two-day meeting of the U.S.-Chinese Joint Committee on Commerce and Trade in the southwestern city of Chengdu.