Update – US Challenge to China Export Subsidy Program

Dear Friends,

Further to the below, we are writing to let you know that the U.S. Trade Representative announced yesterday that the below dispute has been resolved and that the Chinese government has agreed to terminate the export subsidies involved.  More details on the agreement can be found here.

Practically, this should mean that the companies that previously benefitted from the subsidies will now have to charge their customers higher prices (without the subsidies, the Chinese companies will now have higher costs, which they may attempt to pass on to their customers.  Given the weakening of the yuan, however, it will interesting to see if that happens.  Those companies in the 7 impacted sectors should keep an eye on the prices.

If you have any questions about this development, please let us know.

Best regards,

Ted

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