Econintersect: The U.S is set to lodge an unfair trading charge against China over support it has given to its domestic automakers and auto parts manufacturers. According to a White House announcement Sunday (16 September 2012), President Obama will make a public announcement of the action during a campaign tour Monday in the state of Ohio which is heavily dependent on the auto and parts industries.
The president’s Republican opponent, Mitt Romney, has been very critical of lack of action by the incumbent administration on the matter of unfair Chinese practices in the auto and parts industries.
According to the White House statement Sunday, the complaint will also protest China’s import duties on U.S. auto industry exports. From Reuters:
Obama has said Beijing is abusing trade laws by imposing more than $3 billion in duties on U.S. auto exports. In addition to launching the subsidies case, the president is taking the next formal step in the World Trade Organization to protest those duties, the official said.
The Reuters article says that China imposed the import duties in response to U.S. rescue efforts for GM and Chrysler.
- Obama to launch auto trade case against China: official (Mark Felsenthal, Reuters, Yahoo News, 17 September 2012)