China requested that the World Trade Organization's Dispute Settlement Body include U.S. countervailing duty measures against Chinese goods in the agenda of its Oct. 28 meeting, as it seeks $2.4 billion in sanctions against the U.S.
An investigation beginning in 2012 by a WTO panel concluded that the U.S. "acted inconsistently" with several of its commitments under the Agreement on Subsidies and Countervailing Measures, or SCM. The panel asked the U.S. to comply with the obligations within a reasonable period, and if it failed to do so, China could be authorized to cancel concessions granted to the country if no compensation had been agreed upon.
Goods being affected by the United States' countervailing measures include print graphics, drill pipe, aluminum extrusions, steel cylinders, solar panels and wind towers from China.
On Aug. 15, the Dispute Settlement Body, or DSB, ruled that U.S. measures were at odds with the relevant provisions of the SCM agreement and recommended that the U.S. make its measures conform. That day, the panel concluded that the U.S. did not communicate its intention to comply with the recommendations put forward by the DSB.
"In response to the [U.S.] continued non-compliance with the DSB's recommendations and rulings, China requests authorization from the DSB to suspend concessions and related obligations at an annual amount of $2.4 billion," a document released by the body read.