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Obama to launch auto trade case against China

17 September 2012 12:35 (UTC +04:00)

Baku â€“ APA-Economics. President Barack Obama will launch a trade complaint against China over what his administration says is Beijing’s unfair government backing of its auto industry, a White House official said on Sunday, APA reports citing Reuters.

Obama will announce during a campaign tour of Ohio on Monday that he is initiating a case against China at the World Trade Organization over allegedly illegal subsidies for automobiles and auto parts, the official said.

The move allows Obama to take a stand on China and advance the interests of a major job-providing industry in a state that could tip the balance in a close election. His opponent, Mitt Romney, has attacked Obama for what he says is an overly cautious approach to pressuring China into observing international norms for trade, foreign exchange, and patents and trademarks.

Ohio relies heavily on the auto industry and is a politically important swing state.

"The key principle at stake is that China must play by the rules of the global trading system," the 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."

Obama has said Beijing is abusing trade laws by imposing more than $3 billion in duties on U.S. auto exports. In addition to launching the subsidies case, the president is taking the next formal step in the World Trade Organization to protest those duties, the official said.