The Chinese Government has recently announced that this country would not let the World Trade Organization (WTO) to initiate investigation based on US’s claim over illegal economic subsidy in of China.

Also, China has just rejected the proposal by US and Mexico to establish an investigation board to conduct investigation on economic subsidy. According to US and Mexico, they will continue to place their claims to WTO Dispute Settlement Board.

As stipulated in current WTO’s regulation, this body will initiate investigation upon receipt second submission of claims from member countries.

A source said that US has claimed China to violate WTO’s regulation by providing tax cut and tax exemption for domestic enterprises as well as other export promotion scheme to US market. Meanwhile, China affirmed that their subsidized policies were consistent with WTO’s regulations.

Several bilateral talks have been held to solve this dispute, yet no final agreement was reached between the two sides.