The action is significant because of intense competition between U.S. and Chinese manufacturers of clean energy technology. Whether it will lead to other such actions involving questionable Chinese trade practices remains unclear.
“This issue has been a huge one,” says Barry Bosworth, an economics and trade expert at the non-partisan Brookings Institution. “It’s symptomatic of a principle that would apply across a wide range of trade.”
The World Trade Organization prohibits government programs that give preferences to companies using local products, such as China’s program of “indigenous innovation.” Thewind power grants ranged from $6 million to $22 million, Kirk’s office says. “This outcome helps ensure fairness for American clean technology companies and workers,” Kirk says.
The case marks the third successful challenge against Chinese government subsidiesbrought by the U.S. and other countries. China agreed to eliminate other subsidies following complaints filed by the U.S., Mexico and Guatemala in 2007 and 2008.
