BEIJING, Feb. 6 -- The Chinese government said it regrets a U.S. decision to bring Beijing before the World Trade Organization (WTO) over its industry subsidies.

    The U.S. government filed a complaint last Friday with the global trade body against China's industry subsidies.

    "It's a pity the United States has sought the consultation process at the World Trade Organization," said a Chinese commerce ministry spokesman.

    The spokesman said the Chinese government was reviewing the U.S. case, adding that the two sides had "kept bilateral contact over the issue all along". But he declined to disclose detailed information.

    The U.S. Trade Representative Susan Schwab said tax breaks and tariff exemptions encourage Chinese companies to buy Chinese-made equipment rather than imports, while financial incentives help firms to export their goods. She said the time for negotiations had been "exhausted".

    The U.S. claims China's State subsidies for steel, paper, information technology and other industries allow China to export its goods on the cheap, preventing U.S. firms from being able to compete fairly, both at home and in other markets.

    Unnamed insiders close to the situation said the complaint also pointed to China's preferential corporate income tax for foreign investors.

    According to WTO regulations, the Chinese government has five days to accept the consultation appeal and Washington and Beijing should enter into formal consultations at the WTO.

    If they fail to resolve the matter within 60 days, the U.S. can appeal to a WTO dispute settlement panel for a decision. No third party has asked to be part of the consultation.

    It is the third time the United States has brought China before the WTO since it joined the organization in 2001.

    "The U.S. complaint this time covers a vast range of areas," said Li Xiangyang, a researcher with the Chinese Academy of Social Sciences.

    The tense trade relationship between the two economies is largely the result of China's yawning trade surplus with the U.S.. The U.S. government has not only initiated an increasing number of anti-dumping charges against Chinese products, but has also adopted other measures such as WTO complaints and countervailing measures to protect its industries.

    Li said the U.S. had not provided reasonable evidence on China's industry subsidies.