US drags China to WTO over 'protectionist' policy

The United States said Friday it had hauled China to the WTO over Beijing's programs to market Chinese-branded goods, which Washington charged were based on "protectionist" policy.
"We are going to the WTO today because we are determined to use all resources available to fight industrial policies that aim to unfairly promote Chinese-branded products at the expense of" American interests, said US Trade Representative Susan Schwab.
The US move addresses, among others, two of Beijing's key Chinese brand programs.
At the central government level, China has established the "Famous Export Brand" program and the "China World Top Brand" program under which the government set out criteria for an enterprise to receive such designations.
Enterprises involved the programs are entitled to various government preferences, including what Washington said appeared to be financial support tied to exports.
The United States, Schwab said, was concerned that the Chinese programs appeared to incorporate export subsidies and "protectionist industrial policy apparently underlying these programs."
These programs, she added, appeared designed to promote the development of global Chinese brand names and to increase sales of Chinese-branded merchandise around the world.
Washington's decision to seek World Trade Organization (WTO) dispute settlement consultations with China came after analysis of dozens of the promotion programs, Schwab's office said in a statement.
Following the request, both parties would have 60 days to resolve the dispute bilaterally.
If no resolution is reached, WTO arbitrators would then be asked to make a ruling which could be appealed by either side.