The United States and China have resolved their dispute at the World Trade Organisation over semiconductors, US Trade Representative Robert Zoellick said Thursday.
"China is the fastest-growing market for our industry, worth some two billion dollars in the past year," Zoellick said. "Continued access to this market is vital to the health of the industry."
China has agreed not to certify any new semiconductor products or manufacturers as eligible for tax refunds, Zoellick said.
Beijing also has agreed not to offer tax refunds that favor semiconductors designed in China, and to eliminate all tax refunds on Chinese-produced semiconductors by April 1, the USTR added.
China presently imposes 17 percent VAT on sales of all imported and domestically produced semiconductors, but rebates the amount of the VAT burden in excess of three percent for semiconductors produced in China.
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