A Chrysler 300C Sedan SRT-8 6.1 HEMI V8 is on display at the Geneva Motor Show. (Photo : Reuters)
The United States filed a trade complaint against China for putting disproportionate duties of more than $3.3 billion on U.S. auto exports, mainly General Motors and Chrysler Group products.
The White House today distributed a fact sheet, revealing that Chinese duties cover more than 80% of U.S. vehicle exports to China that include Sports Utility Vehicles made in America.
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China imposed higher duties after knowing that United States has provided subsidies to bailout GM and Chrysler, $49.5 billion and $12.5 billion respectively. In response to China’s action, U.S. Trade Representative Ron Kirk has filed a case against China with the World Trade Organization.
“As we have made clear, the Obama administration will continue to fight to ensure that China does not misuse its trade laws and violate its international trade commitments to block exports of American-made products,” Kirk said.
“American auto workers and manufacturers deserve a level playing field and we are taking every step necessary to stand up for them,” Kirk added.
In May 2011, China's Ministry of Commerce probed into the selling of imported U.S.-built cars, finding that they were sold at a price lower than fair and doubted if U.S. had dumped them into China given that American government also gave subsidies to them. China started to impose penalties from December, putting anti-dumping duties on about 92,000 large-engine vehicles and SUVs China imported from U.S.A. each year.
The United States claims China started the investigations without enough evidence and did not look into the evidence objectively.
Higher duties has great impact on imports of vehicles made by GM and Chrysler concerning the large amount of bailout U.S. government provided to them in exchange for stake share of the companies.
President Barack Obama will emphasize the effort next Thursday at a campaign stop in Toledo as he begins a two-day bus tour that will stress the administration's big consideration for the U.S. auto industry.
Republican presidential candidate Mitt Romney made a vow, saying that he would not be soft on China as Obama had been and he would mark it as a currency manipulator on his first day in office. He has also heavily chastised government secret bailout of GM and Chrysler.
U.S. file against China to WTO will bring about a 60-day talk in order to settle the dispute. If the talk cannot work, U.S. can request WTO judges to rule.