The United States appeals to the World Trade Organization (WTO) against Chinese subsidies to the automotive and auto parts industries. In an initial phase of the process, Washington has requested consultations for a resolution of the dispute. According to the US local industry is hurt by cheap Chinese imports. The appeal is based on the Chinese "export base" program according to which Beijing would support some producers in designated regions in order to develop them as export hubs. The Chinese government injected more than a billion US dollars into the domestic sector between 2009 and 2011.
"The Chinese program - argue the American producers - guarantees export subsidies which are not foreseen according to the rules of the WTO because they would constitute a distortion of trade relations".
This move follows China's decision to challenge US anti-dumping measures on billions of dollars worth of kitchen equipment, paper and other goods at the WTO because they would add a burden to international industry at a time of weak demand .
Beijing and Washington have clashed several times over trade barriers and subsidies to industry in various sectors, including autos, solar panels, tyres, steel and poultry. Political pressure is mounting on both sides at a time of general decline in demand and job losses.
http://www.chinapost.com.tw/business/americas/2012/09/18/354677/US-China.htm
