Saturday, December 01, 2007

China 'ends illegal tax breaks'

China 'ends illegal tax breaks'
(BBC News)

China has agreed to end the granting of tax breaks to local manufacturers at the expense of U.S. and Mexican firms, according to US trade officials.

Under the deal, China will remove the subsidies that the U.S. claimed gave Chinese companies an unfair competitive advantage by the end of the year.

The move is a major breakthrough for U.S.-China trade relations which have been strained recently, analysts say.

It comes months after the U.S. filed a case on the issue at the WTO.

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