U.S. to Launch Anti-Subsidy Probe on China’s Auto Exports

Source: Sina Finance, ChinaScope Financial (Data)

+       The U.S. has requested a World Trade Organization (WTO) consultation with China on the auto export subsidies. The U.S. accused Chinese auto exporters of receiving at least USD 1 billion in government subsidies between 2009 and 2011.

+       The state of Ohio was known for its manufacturing industry. Many people are blaming the current industry downturn on the emergence of Chinese exports.

+       The U.S. government said that China’s “export base” project, in which Chinese auto makers receive governmental support, has helped China increase the value of its exports of automobiles and spare parts from USD 7.4 billion in 2001 to USD 69.1 billion in 2011.

China exports a significant amount of auto parts to the US, implying that some US producers will see their input costs increase because of the ADDs. Much of Chinese auto export to the US is by joint ventures, why the ADDs will also hurt the foreign JV partner.

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