White House Launching Trade Complaints Against China

White House Launching Trade Complaints Against China
September 17, 2012

"The White House Monday will demand through a world trade panel that China stop subsidizing auto parts made for export," reports Cleveland's Plain Dealer.

The Associated Press, which has followed the Plain Dealer's scoop with reporting of its own, says that Obama will use "the power of incumbency to counter Republican Mitt Romney's criticism that he is ceding American jobs to the Asian power."

According to the wire service:

"Senior administration officials said the president will announce the new case, targeting Chinese subsidies for exports of automobiles and automobile parts, Monday during a campaign trip to Ohio. The swing state has a large manufacturing base where many blame China for depressing its industry."

Also citing "senior administration officials," the Plain Dealer says that the administration will make the case to the World Trade Organization that China "undercuts manufacturers in Ohio and elsewhere by reducing the cost of Chinese auto parts" and that the practice also "encourages U.S. companies to outsource jobs."

The Plain Dealer also writes that in a separate action, the administration will ask the WTO "to step up a review of what the White House says are unfair duties that China levies on American-made cars."

Update at 10:05 a.m. ET. China Must "Live Up To Its International Obligations."

In a statement sent to reporters a short time ago, U.S. Trade Representative Ron Kirk confirms the U.S. is seeking "dispute settlement consultations with the Government of China at the World Trade Organization" and says that:

"China expressly agreed to eliminate all export subsidies when it joined the WTO in 2001. China benefits from international trade rules and must in turn live up to its international obligations."