Efforts by the United States and Mexico to push for
investigations by the World Trade Organization (WTO) into China's
alleged subsidizing of industrial exports are motivated by domestic
political goals, the Ministry of Commerce said Monday.
The two countries filed the lawsuit due to a huge
misunderstanding concerning China's policies, said a ministry
spokesman.
On Friday, the WTO set up an expert panel to probe whether China
was illegally subsidizing industrial exports as alleged by the
United States and Mexico.
The United States first filed the case to the WTO in February
and was later joined by Mexico. The two countries complained that
China was using tax breaks and other incentives to subsidize its
exports in violation of WTO regulations.
"Their actions are motivated by domestic politics. They are
attempting to mix up revisions in China's tax laws and regulations
with the fruits of the WTO's dispute settlement mechanism," said
the spokesman.
"China will continue its current method of improving tax laws
and regulations. This practice is in accordance with the demands of
its social and economic development," he stated.
The United States and Mexico have also turned a blind eye to the
progress made?as well as actual conditions regarding China's
economic system reforms, he claimed.
"Some of the subsidies in their lawsuit have already been
scrapped. China's policies will also be in line with the WTO
regulations after the Enterprise Income Tax Law comes into
effect."
The Enterprise Income Tax Law becomes effective on January 1,
2008.
The United States and Mexico have consistently requested a WTO
probe without acknowledging the progress made through WTO
consultations with China on March 20 and June 22. China has a
sincere and constructive attitude, the spokesman added.
(China Daily, Xinhua News Agency September 4, 2007)
