China Agrees to End Trade Subsidies: US

China agreed today to end trade measures the US had called “market-distorting”, the Associated Press reports, ending a months-long dispute before the world's top trade board. One set of tax breaks encourages Chinese firms to boost exports to the US and other countries; another set of tariffs made it tougher for US firms to export to China.

"This outcome represents a victory for US manufacturers, producers and their workers," said Susan Schwab, US Trade Representative. It is hoped that the termination of the subsidies will help reduce the US' $223 billion trade deficit with China, the largest in US history with a single country. Democrats say the Chinese must change many more policies to affect the deficit.