China's Ministry of Commerce said on Thursday that its designated model zones for exporters meet WTO rules.

Responding to U.S. allegations that China unfairly subsidizes exports in "demonstration base", the MOC said in a statement that the purpose of these model zones is to transform China's foreign trade and promote its sound and stable development.

On Wednesday, the office of the U.S. trade representative said the Chinese government offered unfair subsidized services, prohibited by WTO rules, to seven industries, including textile and clothes makers, light industry and agricultural firms.

The MOC said it will settle the issue according to WTO dispute procedures.