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Japan eyes filing complaint with WTO against China's tax system
2007-02-05
Japan is considering filing a complaint with the World Trade Organization against China's preferential tax system for attracting direct investment by foreign firms, saying it is tantamount to providing export subsidies, government officials said Monday. Japan is envisioning the move to provide a helping hand to the United States, which filed its own complaint against China on Friday arguing Beijing is providing unfair protection to Chinese companies on the basis of its subsidy provisions, they said. The United States will shortly enter into bilateral talks with China to solve the subsidy problem. If the talks do not produce a solution within 60 days from the start of the bilateral talks, it will file a complaint with the WTO dispute settlement panel. Japan is envisioning either joining the U.S.-China talks as a third party or joining negotiations at the WTO panel to demand that China rectify the subsidy problem, they added.
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