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The World Trade Organization (WTO) launched an expert panel on Friday to probe whether China is illegally subsidizing its industrial exports as alleged by the United States and Mexico.

The US first filed the case to the WTO in February and later was joined by Mexico. The two countries complained that China was using tax breaks and other incentives to "subsidize" its exports, which might violate WTO regulations.

At Friday's meeting of the WTO's Dispute Settlement Body, China again defended its position, saying its tax measures mentioned by the United States and Mexico in the case are consistent with WTO regulations.

It is "very disappointing and deeply regrettable" that the United States and Mexico pursue this matter further by requesting the establishment of the panel for a second time, the Chinese delegation said in a statement.

The US and Mexico had requested for a WTO panel on the dispute last month, but was rejected by China according to related WTO regulations.

"In the panel process, China will defend its position and interests and remain confident that relevant measures of China are consistent with its WTO obligations," the statement said.

In a separate case on Friday, China blocked an initial request by the United States for a WTO panel to investigate China's protection and enforcement of intellectual property rights (IPR).

"China consistently spares no efforts to enforce its IPR legislation with great success acknowledged by the international community," the Chinese delegation said in a statement.

"It is regrettable for China to see the United States has chosen to request the establishment of a panel in spite of China's efforts to settle this dispute through consultations."

The United States has complained that China is not doing enough to crack down on counterfeits and piracy.

(China Daily 09/03/2007 page 2)

Vocabulary:

panel：专家咨询组

tax breaks：税收减免

Questions:

1. Name the two countries who have filed complaints against China with the WTO.

2. The WTO is investigating whether China subsidizes its exports, and the article mentions two ways that might be done. What are they?

3. In a separate case on Friday, China blocked an initial request by the United States for a WTO panel to investigate China's what?

Answers:

1. The United States and Mexico.

2.Tax breaks and other incentives.

3. Intellectual property rights protection. 

About the broadcaster:

Jonathan Stewart is a media and journalism expert from the United States with four years of experience as a writer and instructor. He accepted a foreign expert position with chinadaily.com.cn in June 2007 following the completion of his Master of Arts degree in International Relations and Comparative Politics.