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China wants US policies on renewable energy corrected

(Xinhua)

13:24, August 21, 2012

BEIJING -- The Ministry of Commerce is demanding the United States to remove supporting measures for its renewable energy industry, accusing it of violating the World Trade Organization rules.

After an MOC investigation, it was decided that six renewable energy programs introduced by the US government have breached article three of the Agreement on Subsidies and Countervailing Measures, as well as article three of the General Agreement on Tariffs and Trade, the ministry said in a statement issued on Monday.

The six programs on wind, solar and hydroelectric energy in the five states of Washington, Massachusetts, Ohio, New Jersey and California have had a knock-on effect on international trade and caused a barrier for exports of Chinese renewable energy products, the ministry said.

The MOC said it will take relevant legal measures and is demanding the US remove measures so to give equal treatment to Chinese companies.

Last November, the ministry started an investigation upon an application filed by the China Chamber of Commerce for Imports and Exports of Machinery and Electronic Products, and the new energy chamber under the All-China Federation of Industry and Commerce.

The applicants requested the elimination of any negative influence from the US government's policy of support and subsidies in order to maintain a fair trade environment.

The ministry said in a preliminary conclusion released on May 24 that the six US policies had violated WTO rules.

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