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China Responds to WTO Charges of Unfair Practices

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In response to a U.S. challenge before the World Trade Organization, China has shut a fund that the U.S. says subsidized Chinese wind-energy equipment companies. U.S. Trade Rep. Ron Kirk said on June 7 that China closed its Special Fund for Wind Power Equipment Manufacturing, which the U.S. contended violated WTO rules by providing grants to Chinese wind-turbine companies that used Chinese-made components instead of imported parts. The grants ranged from $6.7 million to $22.5 million and may have totaled several hundred million dollars since 2008, according to Kirk’s office. USTR launched a probe last October in response to a petition filed by the United Steelworkers union, which alleged that Chinese aid for its wind-power companies ran counter to WTO requirements.

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