US confirms China has ended tax breaks for domestic airplanes

US confirms China has ended tax breaks for domestic airplanes
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The Obama administration said Tuesday that China has ended tax breaks benefitting its domestically produced aircraft over those of U.S. manufacturers. 

U.S. Trade Representative Michael FromanMichael B.G. FromanOn The Money: Sanders unveils plan to wipe .6T in student debt | How Sanders plan plays in rivalry with Warren | Treasury watchdog to probe delay of Harriet Tubman bills | Trump says Fed 'blew it' on rate decision Democrats give Trump trade chief high marks US trade rep spent nearly M to furnish offices: report MORE said Beijing has rescinded a policy that exempted certain types of its own aircraft, generally those under 25 metric tons by weight, including business jets, from a 17 percent value-added tax while imposing the tax on imported aircraft.


“While we are happy to announce this discrimination has ended, we remain deeply concerned about China’s lack of transparency on taxes affecting American products,” Froman said.

"Our proactive efforts in this case put a spotlight on this problem and prompted China to remove the secrecy that obscured this policy," he said.

The United States challenged the tax exemptions at the World Trade Organization (WTO).

Froman said that China did not publish the tax exemptions or the official documents that ended them at the time, as required by its WTO commitments.

"As this case highlights, not only has China continued to maintain illegal market distorting policies since it joined the WTO, its policies are too often hidden behind a wall of secrecy," said Sen. Ron WydenRonald (Ron) Lee WydenWyden blasts FEC Republicans for blocking probe into NRA over possible Russia donations Wyden calls for end to political ad targeting on Facebook, Google Ex-CIA chief worries campaigns falling short on cybersecurity MORE (D-Ore.).  

"That must stop," Wyden said.

Congressional lawmakers hailed the news as a win for the U.S. aviation industry.

House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyRepublicans' rendezvous with reality — their plan is to cut Social Security The Social Security 2100 Act is critical for millennials and small business owners House panel releases documents of presidential tax return request before Trump MORE (R-Texas) called the announcement "a huge victory for American aerospace workers and another example of how our nation wins when we rigorously enforce our trade agreements."

Since 2009, the Obama administration has brought 23 enforcement actions at the WTO, including 14 challenges against China. The United States has won every single one of those complaints that has been decided so far.