皇冠体育app

(皇冠体育app Daily/Xinhua)
Updated: 2007-09-04 07:10

Efforts by the United States and Mexico to push for investigations by the World Trade Organization (WTO) into 皇冠体育app's alleged subsidizing of industrial exports are motivated by domestic political goals, the Ministry of Commerce said Monday.

The two countries had lodged the lawsuit with a huge misunderstanding of 皇冠体育app's policies, said a ministry spokesman.

On Friday, the WTO set up an expert panel to probe whether 皇冠体育app was illegally subsidizing industrial exports as alleged by the United States and Mexico.

The United States first filed the case to the WTO in February and was later joined by Mexico. The two countries complained that 皇冠体育app was using tax breaks and other incentives to subsidize its exports in violation of WTO regulations.

"Their actions are motivated by domestic politics. They attempt to mix up the improvement in 皇冠体育app's tax laws and regulations with the fruits of the WTO's dispute settlement mechanism," said the spokesman.

"皇冠体育app will not change its way of improving tax laws and regulations in accordance with the demands of its social and economic development," he said.

The United States and Mexico have also turned a blind eye to the progress made by, and actual conditions of, 皇冠体育app's economic system reforms, he claimed.

"Some of the subsidies in their lawsuit have already been scrapped, and 皇冠体育app's policies will also be in line with the WTO regulations after the Enterprise Income Tax Law comes into effect."

The Enterprise Income Tax Law will be effective on January 1, 2008.

The United States and Mexico have consistently made the requests for a WTO probe without acknowledging the progress made in consultations with 皇冠体育app on March 20 and June 22 and 皇冠体育app's sincere and constructive attitude, the spokesman added.