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China Agrees to End Wind Power Subsidies


Workers prepare to lift a giant blade to be used as part of wind turbines at the Vestas Wind Technology (China) Co. Ltd. factory in Tianjin, China, September 14, 2010.

Workers prepare to lift a giant blade to be used as part of wind turbines at the Vestas Wind Technology (China) Co. Ltd. factory in Tianjin, China, September 14, 2010.

China has agreed to stop subsidizing domestic manufacturers of wind energy turbine components, after the United States filed a complaint with the World Trade Organization (WTO) alleging the subsidies illegally shut out foreign competition.

The U.S. challenge was filed in December, just weeks before a U.S. visit by China's President Hu Jintao. The challenge accused Beijing of providing millions of dollars since 2008 to turbine manufacturers as incentives to use key components made in China.

Beijing has not responded to U.S. Trade Representative Ron Kirk's announcement of the deal on Tuesday.

The subsidies, valued at between $6 million and $22 million, were challenged by the United Steelworkers Union. It was one of several complaints U.S. trade officials have made about Chinese support for it exporters, which Washington says unfairly boosts China's massive surplus in bilateral trade.

Some information for this report was provided by AP, AFP and Reuters.

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