China says US energy projects violate free trade

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Associated Press

Posted on August 21, 2012 at 12:02 AM

Updated Tuesday, Aug 21 at 12:31 AM

BEIJING (AP) — China's government is crying foul over U.S. government support to six American solar and wind power projects.

Beijing's Commerce Ministry ruling that the support violates free trade rules adds to strains between Beijing and its trading partners over renewable energy.

The United States and China are the two biggest markets for renewable energy and have pledged to cooperate in developing technology. They accuse each other of improperly supporting their own producers and obstructing foreign competitors.

The Commerce Ministry announcement made no mention of possible penalties but called on Washington to stop the support that it said violates World Trade Organization rules.

Beijing is in the midst of a series of trade disputes with the United States and Europe over market access and government subsidies for solar, wind and other renewable energy industries.

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