China agrees to end unfair trade subsidies

The Bush administration announces a major breakthrough in the tense trade relationship between the United States and China.

The Bush administration announced Thursday that China has agreed to eliminate improper trade subsidies it was using to the detriment of U.S. and other foreign companies.

The deal, announced in Washington by U.S. Trade Representative Susan Schwab, represented a major breakthrough in the tense trade relations between the two countries. It came after lengthy negotiations that started when the administration filed a case against China on the issue in February before the World Trade Organization, the Geneva-based body that oversees the rules of world trade.

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