U.S. Prosecutes China's Automobile and Parts Subsidies to WTO

On September 17, 2012, the World Trade Organization stated that the United States offered a subsidy to the auto industry on the same day to appeal to the WTO dispute settlement mechanism and requested a consultation with China.

The United States asked for consultations to include "providing funds, loans, abandoning taxes that should be collected, providing goods and services, and other incentive measures related to the performance of auto and Auto Parts companies' exports."

According to reports, the United States has asked for consultations on the automobile industry policies, automobile "export bases" and regulatory documents of some provinces and cities in China. The relevant personage thinks that this is another trade lawsuit brought by the U.S. government against China in the context of general elections.

The United States also informed the WTO on the 17th that it will establish an expert group on the case of anti-dumping and countervailing duties imposed by China on some American cars at a routine meeting of the dispute settlement mechanism to be held on September 28. The United States submitted a consultation request to China on July 9, but the two sides failed to reach an agreement.

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