U.S. Senator Debbie Stabenow today issued the following statement in response to China's halting of illegal subsidies for wind turbine production, following U.S. action at the World Trade Organization (WTO) to stop these violations of international trade rules:
"China is constantly breaking the rules in an attempt to gain every possible trade advantage over America, especially in areas with huge job-creating potential like clean energy technology. Today's action shows that Congress and the Administration should pursue every opportunity to stand up to China's violations and put American families and businesses first."
China's "Special Fund for Wind Power Equipment Manufacturing" subsidies paid grants to Chinese wind turbine manufacturers if companies agreed to use components made in China rather than purchasing imports. The size of the individual grants ranged between $6.7 million and $22.5 million. The subsidies were a clear violation of international trade rules.
According to the office of U.S. Trade Representative (USTR) Ron Kirk, this is the third successful WTO challenge that the United States has brought against Chinese government subsidies. In each of these cases, following formal consultations at the WTO, China agreed to eliminate the subsidies that the United States had challenged. The USTR's strong action and proven success in these cases shows the importance and effectiveness of greater enforcement when other nations attempt to gain unfair advantage in the global economy.
Senator Stabenow has been a leader on standing up to China and other violators of fair trade rules. Last Congress she introduced the Trade Enforcement Act, China Fair Trade Act, and Currency Exchange Rate Oversight Reform Act to hold other countries accountable when they refuse to follow trade rules.