automotive parts export subsidies harm china companies in the U.S.



The U.S. government filed a complaint to the World Trade Organization (WTO) over alleged fraud China's exports. According to the U.S., China has subsidized exports of automotive parts that harm U.S. companies.

CNN reported, Monday, September 17, 2012, a complaint was announced by President Barack Obama while campaigning in Ohio. He said that China has subsidized U.S. auto companies prefer to buy spare parts from abroad than domestically-made.

"This subsidy is directly detrimental to the workers in the factories spare parts in Ohio and Michigan. This is incorrect, break the rules, and we will not remain silent," Obama said.

In the U.S. complaint, said that China has budgeted up to U.S. $ 1 billion to subsidize exporters of automotive and spare parts between 2009 and 2011. It is considered illegal, because it violates WTO rules about export subsidies.

In response to this complaint, China immediately lodged a complaint to the WTO about the return of U.S. exports. However, it does not explain the contents of the complaint China.

In the last ten years China's auto industry is growing rapidly, along with the increased purchasing power of the Chinese middle class. This development makes China the largest market worldwide automotive sales. U.S. auto companies like General Motors sells more in China than in their own country.

Aduannya to the U.S. in the WTO said China's exporters in recent years grown remarkably's a big to send spare parts to countries the world's biggest economies, including the U.S.. The White House estimates that, as a result of government subsidies, spare parts exporters benefited by up to 60 percent. The advantage is increasingly difficult for American companies to compete.

Automotive parts from China are flooding the U.S. had a major impact on the availability of jobs in the country. Because workers in the U.S. parts industry there are more workers than the auto makers. It is feared, competition draw will make the U.S. parts industry lethargic or even collapse, heaping more unemployment.

Previously, the U.S. has also filed a similar complaint. Last July, the Obama administration has complained about China are considered a burden to U.S. auto exports by customs to U.S. $ 3 billion.

source : vivanews

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