Zhao said the Chinese government may provide financial assistance in company research and development and grant preferential taxation and loan policies to companies aiming to expand overseas.

"But all of the policies focus on the production phase, not exports. It doesn't break WTO rules," said Zhao.

China marked five years of WTO membership on Dec. 11. Pascal Lamy, WTO director-general, and Charlene Barshefsky, former U.S. trade representative, both senior negotiators during China's entry into the WTO, have praised China's fulfillment of WTO pledges.

Lamy told Xinhua in Geneva that he gave China's performance an A-plus. Barshefsky told Xinhua that China had made remarkable progress in opening its economy since it joined the WTO.

A high-profile U.S. delegation led by Treasury Secretary Henry Paulson arrived in Beijing Wednesday for the first China-U.S. strategic economic dialogue.

Among Paulson's delegation are the U.S. Cabinet secretaries of commerce, labor, energy and health and human services. Ben Bernanke, the chairman of the U.S. Federal Reserve and the U.S. Trade Representative Susan Schwab will also take part in the meetings.

1

2

(For more biz stories, please visit Industry Updates)