US Trade Representative Robert Zoellick announced on Thursday
that the US was filing its first trade case against China before
the World Trade Organization (WTO), contending that China is
violating WTO rules against discriminatory treatment by providing a
preferential tax rate for integrated computer circuits produced in
China that is much lower than the tax paid by US and other foreign
companies.
"US manufacturers of semiconductors and other products have a
right to compete on a level playing field with Chinese firms,"
Zoellick said.
The US notice will begin a 60-day consultation period in which
the two sides can seek to resolve the issue through negotiations.
If that fails, the US government can proceed with a case before a
WTO dispute panel.
(Xinhua News Agency March 19, 2004)