A major breakthrough in trade relations between the United States and China was announced Thursday by U.S. Trade Representative Susan Schwab. China has agreed to eliminate tax breaks that are against World Trade Organization rules that encourage Chinese companies to export more to the U.S. and other countries. According to Schwab, China also lifted tax and tariff penalties that hurt other country's ability to sell goods into China.
"This outcome represents a victory for U.S. manufacturers, producers and their workers," Schwab says. The deal was made following negotiations begun by the U.S. filing a trade case against China with the WTO in February.
"This announcement makes clear that the administration's policy of serious dialogue and resolute enforcement is delivering real results," Schwab says. "It clearly shows the wisdom of this approach over some legislative approaches that would simply impose retaliatory tariffs."