China on Tuesday blocked US and Mexican requests to
involve a World Trade Organization (WTO) experts panel in an
investigation of alleged illegal Chinese industrial subsidies,
trade sources said.
"We are puzzled by the complainants' decision to initiate the
panel process," the Chinese trade delegation told a meeting of the
WTO's Dispute Settlement Body (DSB).
China stressed that measures were already underway to reform
its company taxation regime and that those "measures identified by
the complainants were fully in line with WTO subsidy
It also raised the issue of "several non-existent measures"
included in the US and Mexican complaints, which China showed as
proof of their "misunderstanding and false allegations."
"For the reasons mentioned, China cannot condone the
establishment of a panel at this meeting," it said.
The United States has accused China of using taxation measures
to "subsidize" exports and limit imports, an act which would be
flouting WTO rules. The complaint was first voiced to the WTO in
February and picked up steam when Mexico backed it.
The United States, Mexico have already held two rounds of
consultations with China, with Washington describing them as
"constructive". However, with their concerns still unresolved, the
United States and Mexico insisted the WTO panel process
Under WTO rules, a panel request could only be blocked
once, therefore should the request be renewed at the WTO's next DSB
meeting, possibly in September, a panel would be automatically
However, such a panel can take years to come to a final
(Xinhua News Agency July 25, 2007)