New U.S. – China Trade Disputes — Action is Seen Again in the ITC and the WTO.


Two new developments concerning U.S. – China trade litigation only highlights the growing trade friction between these two countries, unfortunately.

Yesterday the U.S. International Trade Commission imposed countervailing duties on Chinese wind-turbine towers alleging that Chinese manufacturers receive illegal subsidies from the Chinese government in this clean-energy sector.

A few days earlier China filed a new litigation against the U.S. in the WTO complaining of U.S. subsidies on various exports to China. China alleges that the reliance by the U.S. on a “rebuttable presumption” that majority government ownership is sufficient to treat enterprises as a “public body” is inconsistent with WTO trade rules.

So the trade disputes continue to mount up.

Hope this doesn’t stop Chinese FDI into the U.S. The latest U.S. employment data only highlights the need for greater foreign investment to promote economic development in the states. Federal action endangers this. There seems to be a disconnect between federal and state policies.

China’s investment into the U.S. for the first quarter this year (2012) was $8 million down from $975 million a year earlier. By the way China’s overseas investment surged to $21.4 billion globally for the first quarter.

Need more be said?

About Stuart Malawer

Distinguished Service Professor of Law & International Trade at George Mason University (Schar School of Public Policy).
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