U.S. Launches Auto Case Against China, Beijing Fires Back [View all]
By Doug Palmer and Tom Miles
WASHINGTON/GENEVA | Mon Sep 17, 2012 11:51am EDT
(Reuters) - The United States on Monday launched a new trade case against Chinese auto and auto-parts subsidies as President Barack Obama stumped for votes in Ohio, an auto manufacturing state that could be decisive in the November presidential election.
Beijing fired back with a complaint against U.S. duties on many Chinese exports, in the latest sign of trade tension between the world's two largest economies.
The new U.S. 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.
"Those subsidies directly harm working men and women on the assembly line in Ohio and Michigan and across the Midwest. It's not right; it's against the rules; and we will not let it stand," Obama said in the advance text of a speech he was to deliver in Ohio.