China will put a stop to export subsidies it has been granting for years to a host of industries, giving them an unfair advantage when competing with other companies around the world. China ended a program which provided export subsidies of some billion dollars over three years to Chinese companies in seven economic sectors including apparel, textiles and footwear, hardware and building materials, light industry and agriculture.
China is supposed to be subsidizing billions more in exports through its support for state-controlled behemoths that ship low-cost products around the world, threatening rivals in the US and other countries.
Export subsidies are prohibited under WTO rules. China’s export subsidies were not consistent with international trade obligations and a balanced business model. The US felt Chinese subsidies were hurting American workers, farmers, ranchers, and businesses, who wanted to play by the rules and wanted to compete fairly, on the merits of their hard work and the quality of their products. Americans employed in seven diverse sectors that run the gamut from agriculture to textiles to medical products will benefit from a more level playing field on which to compete.
China’s rise to become the world’s largest exporter of textile and apparel products was aided a lot by a pervasive series of state-sponsored subsidies.