US takes action against China's wind power subsidies

The United States filed a case at the World Trade Organization against China’s subsidies on wind power development.

US Trade Representative Ron Kirk pointed out that the subsidies are in violation of WTO’s regulations Import substitution subsidies are particularly harmful and inherently trade distorting.

"These subsidies effectively operate as a barrier to US exports to China. Opening markets by removing barriers to our exports is a core element of the President's trade strategy," he pointed out.


Under its Special Fund for Wind Power Manufacturing, China appears to provide subsidies that are prohibited under WTO rules, because the grants awarded under the programme seem to be contingent on Chinese wind power equipment manufacturers using parts and components made in China rather than foreign-made parts and components, the US said.