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China ends wind power subsidies after US challenge | China ends wind power subsidies after US challenge |
(40 minutes later) | |
China has agreed to halt subsidies to wind power manufacturers that violate World Trade Organisation (WTO) rules, according to US Trade Representative Ron Kirk. | |
The move comes after the the United Steelworkers Union filed a complaint to the World Trade Organisation (WTO). | The move comes after the the United Steelworkers Union filed a complaint to the World Trade Organisation (WTO). |
The Chinese currently subsidise wind-power firms that use domestic parts instead of imports. | The Chinese currently subsidise wind-power firms that use domestic parts instead of imports. |
Mr Kirk said this gives them an unfair advantage over US wind turbine makers. | Mr Kirk said this gives them an unfair advantage over US wind turbine makers. |
"The US is pleased that China has shut down this subsidy program," said Mr Kirk. | |
There was no comment in response to the statement from China. | |
Job creation | |
China's move comes as the US faces high unemployment and concerns about being able to generate enough new jobs. | |
"We challenged these subsidies so that American manufacturers can produce wind turbine components here in the United States and sell them in China," said Mr Kirk. | "We challenged these subsidies so that American manufacturers can produce wind turbine components here in the United States and sell them in China," said Mr Kirk. |
"That supports well-paying jobs here at home." | "That supports well-paying jobs here at home." |
Mr Kirk also criticised China for not providing regular information to the WTO about its subsidy programmes. | |
"China is the second largest trader at the WTO, and it is simply not acceptable that China continues to evade its transparency commitments," he said. | |
Major shift? | |
While the decision is being hailed as a victory for the US, analysts say it is unlikely the move will slow down the development of China's renewable energy sector. | |
"Chinese wind power companies have reached a stage that, regardless of subsidies, they will head out and aim for overseas markets if there are opportunities," said Dennis Lam from DBS Vickers. | |
China's biggest wind turbine makers, Sinovel Wind Group and Xinjian Goldwind Science and Technology, have already announced overseas expansion plans. |