At a press conference held yesterday in Washington, the US Trade Representative Susan Schwab said China has agreed to terminate a number of subsidies that the US claims are against the rules of the World Trade Organization (WTO).
According to Trade Representative Schwab, the two countries signed an agreement in Geneva in which China says it will eliminate a series of tax rebates on exports by the end of this year. The agreement will also resolve a complaint filed by the United States and Mexico at the World Trade Organization in February 2007.
The US Trade Representative went on to say that the subsidies China has accepted to eliminate include tax rebates for steel, wood products and information technology, which benefit around 60 percent of China's exports.
No announcement has been made by the Chinese side yet.