U.S. Files Trade Case Against China Over Cars
The United States on Monday filed a broad trade case against China at the World Trade Organization, alleging unfair subsidies for exports of cars and auto parts.
The case comes at a critical time in the United States presidential campaign, as auto manufacturing states in the upper Midwest like Michigan, Wisconsin and particularly Ohio have turned into crucial battlegrounds. But the case may not make any difference in terms of jobs for many months, as W.T.O. cases typically take a year and a half before a final decision is reached, and sometimes longer.
Hours after news of the American move began to circulate, but before the trade case was actually filed in Beijing, China’s commerce ministry announced in a statement on its Web site that it was filing its own W.T.O. case against the United States, alleging unfairness in how the United States calculates the penalty tariffs in anti-subsidy cases.
The Chinese action appeared to be coincidental, as the Chinese government seldom responds quickly to trade actions — indeed, the Chinese commerce ministry statement made no mention of the American action. The ministry had no response all day to questions relayed by phone and fax in the morning about the American action.