A senior Chinese economic official has responded to the announcement that the US would investigate Chinese government support for clean energy manufacturers by saying that Washington that it "cannot win this trade fight."
The US alleges that China unfairly supports its manufacturers of wind turbines, solar energy products, energy-efficient vehicles and technologically advanced batteries.
China's response said that the US subsidizes up to 2,300 energy-related programmes, including clean energy projects. The US had accused China of providing more than 216 billion dollars' worth of subsidies.
America's trade deficit with China expanded eight percent to 28 billion dollars, a new record. The gap will be an especially politically sensitive issue as the US' midterm elections approach on November 2.
China hits back over US green energy probe [AFP, October 18 2010]
China rips US complaint on clean energy aid [New York Times, October 18, 2010]