The Chinese commerce ministry has said the US must cut support for six government-backed renewable energy programmes for wind, solar and hydropower because they present a barrier to Chinese exports.
The US programmes in apparent violation of World Trade Organization rules are in the states of Washington, Ohio, Massachusetts, California and New Jersey, the ministry said.
"The Commerce Ministry will adopt relevant legal measures, demands that the United States cancel parts of the measures that violate World Trade Organization rules and give Chinese renewable energy firms fair treatment," the ministry said.
The development is latest phase in a long-running trade dispute between the world’s two largest economies. Last month the US said it would place duties of 70% on imported Chinese turbine towers as an anti-dumping measure.