The US is to launch a case at the World Trade Organisation against China over its export subsidies on cars and car parts, alleging that they are putting American manufacturers at a competitive disadvantage and forcing them to shift production overseas.
White House officials announced their intention to file the WTO dispute on Sunday night, the eve of a visit by President Barack Obama to the key election battleground state of Ohio, known for its manufacturing, where he will be holding two campaign rallies.
“The key principle at stake is that China must play by the rules of the global trading system,” a White House official said. “When it does not, the Obama administration will take action to ensure that American businesses and workers are competing on a level playing field.”