US files case against China over subsidies

The US has lodged a new challenge against China's export subsidies for sectors ranging from agriculture to textile, alleging the support was illegal in international trade law.

Filing the case at the World Trade Organization on Wednesday, Mike Froman, the US trade representative, said in a statement that the policy appears to break the rules that China committed to uphold when it joined the WTO, claiming it hurts American workers, farmers and businesses.

The allegation accuses China of providing unlawful export subsidies to industries including textiles, apparel and footwear, advanced metals, specialty chemicals, medical products, hardware and building materials, and agriculture.

The US has requested formal talks at the WTO with China over the use of government-supported business clusters as its first step in bringing a case at the organization, reported Financial Times on Wednesday.

The Ministry of Commerce had not commented on the allegation as of Thursday morning.