The WTO accuses China of low transparency in state subsidies, including solar energy

The WTO has released a report on China’s trade policies, concluding that the country lacks transparency regarding subsidies for its industries, including solar panel production. In the 173-page “Trade policy evaluation”, the WTO Secretariat noted that many members have called for a comprehensive overhaul to increase the transparency of China’s state aid framework.

“There remained significant skepticism among members about the thoroughness and overall quality of China’s subsidy reporting,” the report said. “In addition to the lack of transparency, many members believed that Chinese subsidies distorted global markets and promoted overcapacity. Some members urged China to join other major economies in discussions on industrial policy to help mitigate its potential negative global impact.”

The report highlights aluminum, electric vehicles, solar panels, glass, shipbuilding, semiconductors and steel as sectors where China reportedly lacks transparency over the allocation of government subsidies. The WTO said the country has reported its subsidy programs for 2019-2020 and 2021-2022 in recent years, but claimed the country has failed to get a “clear overall” picture of these programs.

“I encourage the Chinese authorities to carefully consider the constructive suggestions put forward by Members during this review,” an unnamed WTO Secretariat official said in a statement. “I commend China for providing thorough written responses to all questions received within the prescribed timeframe, and delegations expect to receive final responses within a month.”