WTO Case Settled

Given the complexity of subsidies, I have no idea how the WTO determines what is illegal and what isn't. The US provides a number of subsidies (farming, steel, etc.) which are geared toward protectionism. Why are those ok and others aren't? Regardless, I'm glad to see this settle.

China and the US have settled a WTO case by signing a memorandum of understanding, the Wall Street Journal reported. The joint statement, which includes steps for the Chinese government to take before the end of the year to eliminate subsidies, suspends a US complaint filed with the WTO about the Chinese government's alleged subsidies across a range of subsidies that boosted exports. The US had claimed that subsidized companies accounted for 60% of China's manufacturing exports to the US in 2005. The suspension comes ahead of the bilateral Strategic Economic Dialog next month in Beijing, though a US official said the case could be revived if China fails to meet its commitments.