WASHINGTON (Sputnik) — China has agreed to withdraw some of its export subsidies to resolve a long-standing trade dispute with the United States, US Trade Representative Michael Froman said in a statement on Thursday.
"Today we have signed an agreement with China to eliminate export subsidies that the United States challenged because they are prohibited under WTO rules," the statement said.
Specifically, China agreed to withdraw central government funding for the program, known as the "demonstration bases-common service platform," and terminate preferential service agreements with Chinese companies, according to the statement.
"This is a win for Americans employed in seven diverse sectors that run the gamut from agriculture to textiles to medical products, who will benefit from a more level playing field on which to compete," Froman said.
In 2015, the United States filed a complaint with the World Trade Organization (WTO), arguing that the subsidy program unfairly benefited Chinese companies and violated WTO rules. At the time, US officials said the Chinese government had given more than $1 billion to state companies over three years.
