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The US government announced on Thursday that it had resolved its dispute on semiconductor trade with China.

The United States had filed a case against China before the World Trade Organization (WTO) in March in which it contended China was using its tax code to discriminate against American semiconductor manufacturers.

US Trade Representative Robert Zoellick's office said in a statement that China had agreed not to certify any new semiconductor products or manufacturers for tax refunds.

China is a big market for US semiconductor producers and US exports of integrated circuits to China totaled 2.02 billion US dollars in 2003.