China has promised to end market-distorting subsidies, but has avoided giving any details on how it would fulfill this promise, according to a Reuters report published last week.
Reuters cited sources familiar with the US-China trade talks indicating that China will bring all its subsidy programs into compliance with World Trade Organization (WTO) rules.
For the US Trade Representative Robert Lighthizer, reining China’s state subsidies is a priority in the trade talks. One of the sources said China has failed to report state subsidies to the WTO since it joined the organization in 2001.
If the two countries fail to reach a deal by March 1, the US will increase tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent.