The stormy session showed the precarious nature of the global trading system and profiled what appeared to be irreconcilable differences between some of the world’s key trading nations.
According to the sources, the US first took the floor to claim that China’s “extensive, state-driven subsidies are uniquely responsible for persistent and harmful global overcapacity”. The US representative said subsidies, including “cheap land” and “large-scale financing”, “artificially boost production in sectors like steel, solar, electric vehicles and chemicals far beyond domestic or global demand”.
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‘Fake news’: Chinese officials dismiss claims of US trade war consultations
‘Fake news’: Chinese officials dismiss claims of US trade war consultations
The US representatives claimed the trend was causing factories to close from South Africa to India, and that China’s “reluctance to discuss the issue highlighted how sensitive the matter is for China and how it seeks to avoid transparency regarding the impact of its subsidies”, the source said.
