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China upset with U.S. trade inquiry

BEIJING, Oct. 17 (UPI) -- A Chinese official Sunday expressed displeasure with the United States' decision to look into China's subsidies to clean-energy industries.

Zhang Guobao, a senior Chinese economics official said the United States subsidizes companies to a greater extent and warned Washington "cannot win this trade fight," The New York Times reported.

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Zhang called the Obama administration's inquiry pre-election politicking and said U.S. officials have repeatedly delayed talks on trade issues.

"I have been thinking: what do the Americans want?" Zhang, vice chairman of the government's National Development and Reform Commission, said. "Do they want fair trade? Or an earnest dialogue? Or transparent information? I don't think they want any of this. I think more likely, the Americans just want votes."

The U.S. Trade Representative's office said Friday it would investigate Chinese government support for manufacturers of alternative energy products such as wind turbines, solar-energy products, energy-efficient vehicles and batteries.

The United Steelworkers union filed a complaint last month accusing China of ignoring World Trade Organization rules against excessive subsidies of those markets.

Zhang countered the union's charges by saying U.S. subsidies to clean-energy industries proposed by the Obama administration total $60 billion, while "as far as I know, Chinese subsidies coming from all sectors, including taxes, are nominal."

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"What America is blaming us for is exactly what they do themselves," Zhang said. "Chinese subsidies to new energy companies are much smaller than those of the U.S. government. If the U.S. government can subsidize companies, then why can't we?"

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