Trade Tensions Continue: China Says U.S.’ Incentives Break WTO Rules


The Ministry of Commerce of the People's Republic of China (MOFCOM) has ruled that six U.S. incentive programs for solar power and other forms of renewable energy violate agreed-upon World Trade Organization (WTO) policies.

According to the MOFCOM, the state-level incentives – which include a solar rebate program in Massachusetts, a renewable energy manufacturing incentive in New Jersey, a project incentive in Washington and a self-generation project incentive in California – ‘distort the normal trade and [constitute] a trade barrier to the Chinese renewable energy products exports to the U.S.’

The MOFCOM announcement follows an investigation that was initiated last fall in response to a trade complaint. The ministry says it will take ‘relevant measures’ to require the U.S. to remove the stipulations in the incentives that allegedly violate WTO rules and, thus, give ‘fair treatment’ to products exported from China.

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