The United States has recently filed a complaint against China at the World Trade Organization (WTO) regarding unfair global trade practices. Particularly, the US has accused China of harming American companies by providing subsidies to its local businesses. According to US Trade Representative Susan Schwab, the Bush administration attempted to resolve the global trade issue bilaterally. But she said that the efforts of the US failed.

Ms. Schwab said that the Chinese government used tax legislation in order to "encourage exports and discriminate against imports" at the same time. With this regard, she said that a "level playing field" should be observed in global trade. The US made the move amidst its growing trade gap with China.

According to Ms. Schwab, the subsidies, which China provides to its local industries, can distort the conditions of global trade. Such situation can seriously affect small and medium-sized US firms, as well as workers. She also said that American companies should be allowed by China to compete with local firms under fair conditions.

It must be noted that US manufacturers and legislators have called for the Bush administration to push China to commit more to a fair and balanced global trade. During the recent years, the volume of Chinese products shipped to the US has increased. This is due to the fact that US consumers are attracted by the cheaper cost of Chinese goods. However, the low price of Chinese products gives them an unfair advantage over US goods in the market.

According to reports, the US is now beginning the initial stage of a legal complaint by seeking a consultation with the global trade organization. The decision follows the complaint filed by the United States, the European Union, and Canada last year regarding the duties imposed by China on foreign auto parts. Until now, the complaint filed by the three parties still remains unresolved.

Meanwhile, the global trade gap between the US and China is reported to have slid down to $58.2 billion last November 2006. The rate is considered to be the lowest level recorded since June 2005. The decline of the global trade gap has been attributed to the growth of US exports. Despite the drop, the US Commerce Department said that the trade deficit for the entire year was around $701.6 billion. Analysts said that the cooling economy of the US also contributed to the decrease of the trade deficit.