Obama to launch auto trade case against China, say officials

Monday, September 17, 2012
President Barack Obama participating in a conference
call with the national security team
[PHOTO: Pete Souza] 
Washington: U.S. President Barack Obama will launch a trade complaint against China over government subsidies for its auto industry, White House officials said on Monday.

As per the media reports Obama wants to seek an advantage over Republican rival Mitt Romney on an economic issue that has become a flashpoint in the presidential campaign.

Administration officials say Obama will announce the move during a campaign stop in the Midwestern state of Ohio.  The swing state has a large manufacturing base where many blame China for depressing its industry.

The Obama administration says it "is launching enforcement action against China at the World Trade Organization" because, Washington says, Beijing is illegally subsidizing exports in its autos and auto parts sectors.

The U.S. says the practice puts U.S. manufacturers at a competitive disadvantage and encourages the outsourcing of production to China.

The announcement comes as Republican presidential nominee Mitt Romney intensifies his criticism of Obama's approach to China. Both candidates have made China, in particular its trade practices, an election issue.
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