According to an Automotive News report, the U.S. government has launched a trade case that focuses on ending Chinese subsidies of its automotive industry, which threaten American auto industry jobs.

The case claims that the Chinese government has subsidized its automotive export industry in a way that is not allowed under World Trade Organization rules. The U.S. Trade Representative's office is also pushing ahead in a separate WTO case against Chinese duties on exports from the U.S. to China.

As a result of the move, China filed a complaint with the WTO against a new U.S. law aimed at combating China's subsidies. The move is called "Countervailing duties" and includes tariffs on tires and steel.

The launching of this case comes at a time when President Obama is looking for an edge in key battleground states like Ohio, where jobs are put at risk by China's subsidies. The case allows Obama to take a strong stance one the issue; presidential challenger Mitt Romney has criticized the White House for being too soft with China as it regards defending American jobs.

The Ohio auto parts industry directly employs over 50,000 people, and China's undervaluation of its yuan currency has made for cheap Chinese products, which undercut U.S. products. Romney has vowed to declare China a currency manipulator on his first day in office, while current administration officials say much progress has been made without turning up tensions.

Due to WTO rules, China's counter-claim has enacted a 60-day period, in which the U.S. and China can talk things out. After that periods is up, China could ask the WTO to make a ruling on the matter.


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    • 1 Second Ago
  • 88 Comments
      Temple
      • 2 Years Ago
      NOTHING is going to come of this. The US files 13 WTO cases on average a year against China. China is usually found guilty. NOTHING CHANGES as China just ignores WTO rulings. No consequences what so ever. Either the US escalates this or we should drop this whole act.
      cooker263
      • 2 Years Ago
      This is just politics - they're surveying what the chattering masses want to hear and are speaking it. Nothing more. By the way, China is - in effect - subsidizing the US because we can just shift resources elsewhere that are more efficient given the current situation.
      IBx27
      • 2 Years Ago
      The solution is to not import chinese cars. Instead of, oh I don't know, endorsing and encouraging their footholds in southern california for the past 4 years.
      Afi Keita James
      • 2 Years Ago
      Both parties are so worthless, it makes me sick.
      • 2 Years Ago
      [blocked]
      autablog
      • 2 Years Ago
      Obama is a one trick pony. And that one trick is dedicating public resources to the benefit of unions.
      gtc360
      • 2 Years Ago
      What a joke. He's going to complain to the Chinese that their country subsidizes their car companies?! LOL! He knows the Chinese will laugh in his face. An election year trick from a trickster.
      Johnny
      • 2 Years Ago
      Nice to see he finally found his balls. Too bad it took a pending election and pressure from the Japanese who are rightly in China's crosshairs, to finally do it. What a putz.
        delsolo1
        • 2 Years Ago
        @Johnny
        The Obama administration has file as may trade complaints against China in four years as in the eight years of the Bush/Cheney era. This wasn't cover by Fox News?
          AngeloD
          • 2 Years Ago
          @delsolo1
          B.S. Obama has filed 3, counting this one.
        delsolo1
        • 2 Years Ago
        @Johnny
        The Obama administration has file as many trade complaints in four years than eight years of Bush/ Cheney. Was this not covered by Fox News?
        leo
        • 2 Years Ago
        @Johnny
        read delsolo1's line. stop believing either side and wake tf up
      • 2 Years Ago
      [blocked]
        leo
        • 2 Years Ago
        how old are you? economic down turns of this magnitude can not be stopped and fully back to 100% in 4 years. this will linger on for another 4 if not 8 years before we get back you have to read a bit of history & realize that you can't just snap your fingers and fix things. It's even harder when you consider how the internet has changed things and made the economy even more global. I mean our stock drop 5% a day because Greece's parliament decided not to meet up to decide on their troubles, and most of the time even a speculation story that never happens about some other country sends our stock down. it's going to take time like it or not and NO ONE will be able to turn it around by blabbering BS in their campaigns -both sides alike and both know the BS they spit out
          AngeloD
          • 2 Years Ago
          @leo
          Absolute B.S. There are only two periods in US history when a severe recession lasted more than 3 years. The first was in 1929-1940, the second is the one we have been in since 2007. In both cases the depressions were prolonged by incompetent policies implemented by the Federal Government: i.e, quantitative easing, money printing, massive deficit spending, etc. WWII ended the first depression. This second great depression we are in now won't end until the insolvent banks are allowed to fail, the huge backlog of junk home loans are cleared through forclosure, the Fed ends quantitative easing, and deficits are brought under control. In other words, this second great depression won't end until Obama is out of office. He is far too corrupt, far to much in the pockets of the Wall Street banks who fund his campaigns, to ever do what's right for this country. But hey, that's all just racist blather, and it's all Bush's fault anyway.
          PiCASSO
          • 2 Years Ago
          @leo
          AngeloD, well said.
          Steve
          • 2 Years Ago
          @leo
          AngeloD - You are calling this a second depression..... When did this second depression start? It started before Obama was in office. Due to outsourcing many of our jobs during the past 20 years, job growth has been extremely slow.
      jesscott
      • 2 Years Ago
      Nothing gets things done like the last minute. Political posturing - Yes Will anything come of it - No Is Obama a puppet to China because of crazy Debt - Yes
        • 2 Years Ago
        @jesscott
        [blocked]
          k_m94
          • 2 Years Ago
          And it seems you are Shitt Romney's beaoch for actually believing the "47%" bullshit he stated.
      Jerry Hightower
      • 2 Years Ago
      This is something that could have, should have happened a long time ago. But since this is election time it's done to boost his political advantage. Making China mad when we owe them billions upon billions is not smart either. They could demand immediate payment.
        moderate fringe
        • 2 Years Ago
        @Jerry Hightower
        How do you know he didn't clear fake badmouthing this with China? Politicians do things like that all the time. Even if he didn't clear it with them we can pay them back in a second. Obama printed 5 trillion dollars. He will easily spend another 3 trillion. what's another trillion?
        AnthonyL
        • 2 Years Ago
        @Jerry Hightower
        You obviously have no understanding to how sovereign debt works. We didn't apply for loans from China. They purchase(d) Bonds, Bills, and Notes. They CAN"T demand payment. They could sale the bonds in the secondary market if they really didn't want them but that would be a bad idea. Since you have no understanding of the debt markets, you probably have no understanding of credit and currency. Corporations (specifically banks) and Countries purchase US Gov debt usually to post as collateral or to boost the credit quality of their balance sheets.
        Nathan
        • 2 Years Ago
        @Jerry Hightower
        Wouldn't matter if they demand payment, they only own 8% of our debt.
        Temple
        • 2 Years Ago
        @Jerry Hightower
        The US Department of Defence did simulation if China decided to dump all of US Treasury bonds(debt) that they own. The Pentagon concluded that it isn't a threat. China can't use US debt as a financial weapon, it would only have short-term disruptions. http://www.bloomberg.com/news/2012-09-11/china-s-u-s-debt-holdings-aren-t-threat-pentagon-says.html
          moderate fringe
          • 2 Years Ago
          @Temple
          They'd still be selling us a lot cargo ships full of junk even with tariffs. Are they going to get their own people to buy all this junk anytime soon? Europe? Anyone? Doesn't matter, just talk.
      sloturbo
      • 2 Years Ago
      too little, too late.
        • 2 Years Ago
        @sloturbo
        [blocked]
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