US launches auto case against China,Beijing fires back

US President Barack Obama on Monday said the United States was challenging Chinese auto and auto-parts subsidies that threatened American jobs as he campaigned in Ohio,an auto manufacturing state that could be decisive in the November presidential election

Written by Reuters | Cincinnati,geneva | Published: September 18, 2012 2:56 am

US President Barack Obama on Monday said the United States was challenging Chinese auto and auto-parts subsidies that threatened American jobs as he campaigned in Ohio,an auto manufacturing state that could be decisive in the November presidential election.

Beijing fired back with a complaint against US duties on many Chinese exports,in the latest sign of trade tension between the world’s two largest economies.

The US case filed at the World Trade Organization targets what Washington said were “extensive subsidies” to Chinese auto and auto-parts producers located in designated regions,known as export bases.

“These are subsidies that directly harm working men and women on the assembly lines in Ohio and Michigan and across the Midwest,” Obama told a campaign rally. “We are going to stop it. It is not right,it is against the rules,and we will not let it stand.”

Republican presidential nominee Mitt Romney,who has accused Obama of not being tough enough with Beijing on trade,and other Republicans criticized the move by the Democratic White House as a blatant effort to sway votes in an important battleground state.

This was the second time in recent months that Obama has announced a trade action against China while in Ohio.

This year,the United States has also pursued anti-dumping and countervailing duty cases against Chinese-made solar panels and wind turbine towers in response to industry petitions.

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