The United States has begun legal action at the World Trade Organization (WTO), accusing China of using subsidies and implementing tariff, to harm US firms after failing to resolve the dispute bilaterally. US lawmakers and manufacturers have urged the administration to do more to force China to its trade practices, as China is providing subsidies on steel, paper and other utility goods which help Chinese goods being relatively cheap, they become more attractive than US items. Apart from it China is imposing taxes which resulted to encourage exports and discriminate against imports. By requesting a consultation with the WTO, the US is starting the first phase of a legal complaint. The move comes as the US trade deficit with China is at a record high. US Trade Representative Susan Schwab said. China’s subsidies can particularly distort trade conditions for small and medium-sized American enterprises and it should let US companies to compete fairly with Chinese firms