U.S. files China complaint with WTO

DAVOS, Switzerland, Feb. 2 (UPI) -- The United States has filed a complaint against China over what it calls illegal industrial subsidies, U.S. Trade Representative Susan Schwab said Friday.

Washington has asked the World Trade Organization to investigate Beijing's alleged use of illegal subsidies, including incentives for Chinese companies to purchase domestic products instead of buying from U.S. exporters, Schwab said in Switzerland.

"We are committed to challenging China's WTO-inconsistent practices that harm American workers and businesses," Schwab said. "China's use of market-distorting subsidies creates an uneven playing field and subverts China's own efforts to foster consumption-led growth."

Consumption-led growth refers to economic growth from domestic consumption rather than exports. China has accumulated massive trade surpluses against the United States.

Elimination of the subsidies would help level the playing field, particularly for small and midsize U.S. businesses, Schwab said.

This is the third time Washington has taken Beijing to the Geneva-based arbiter of global trade since China joined the WTO in 2001.