U.S. trade officials this week alleged that China provided "excessive government support" for its production of corn, rice and wheat in a complaint to the World Trade Organization.
The Obama administration's filing argued that China's annual establishment of minimum prices for those crops during the harvest season — or "market price support" — kept its domestic prices higher than those on the global market since 2012.
The U.S. alleged that China's support was nearly $100 million more than its commitments under WTO rules for 2015.
Those prices, in turn, affected Chinese production, undercut overseas farmers and distorted a global market already roiled by low agricultural commodity prices.
Administration officials and lawmakers added that U.S. farmers should be able to compete in China on a level playing field.
"As this administration has consistently and repeatedly shown, we will not stand by when our trading partners fail to follow the rules like everyone else," U.S. Trade Representative Michael Froman said in a statement.
The USTR brought 23 complaints to the WTO since the beginning of the Obama administration — including 14 against China — and won every one decided to date. The WTO, however, has also ruled against the U.S. in complaints brought by other nations.
China’s Commerce Ministry responded that it complied with WTO rules and that it was disappointed in the U.S. filing.
Some observers, meanwhile, warned of a potential backlash from China in the form of anti-dumping tariffs on U.S. goods.
“Rather than talk and negotiate, the U.S. has gone out and irritated one of its best customers," Peter Meyer of research firm Pira Energy Group told Bloomberg.
