When I saw that the US was initiating a WTO case challenging China's various tax favors and export rebate, I knew who to turn to for analysis.  

Emmanuel -- a regular participant in the comments section - has long encouraged me to take a closer look at China's export rebates in particular.    

Rather than do that, I decided to give the floor over to him for a day.    Emmanuel's guest post follows. 

Emmanuel: 

The dispute over China’s large and growing trade imbalance with the United States centers on the perceived undervaluation of the yuan. Yet, other components of Chinese trade policy aside from its foreign exchange regime have largely eluded attention--until now. US Trade Representative Susan Schwab has just requested dispute settlement consultations with China in the World Trade Organization over Chinese measures that appear to contravene WTO rules. These consultations are just the first step in what may end up in judicial proceedings, though only about forty percent of such disputes reach the point of being resolved through rulings. If the US and China are unable to resolve this dispute after a period of bilateral consultations lasting sixty days, then the US can ask the WTO to form a panel to settle this dispute. (Continues)