US initiates trade case against China for violation of world trade standards

A trade case against China was initiated by President Barack Obama’s administration yesterday after claiming that the country had violated World Trade Organisation rules by providing extensive subsidies to auto and auto parts exporters.

This enforcement action in the middle of Obama’s re-election campaign as he and Republican Mitt Romney criticise each other on the campaign trail about China and whether the country is following fair trade standards.

The timing of the WTO complaint has nothing to do with the campaign according to Obama’s administration officials. However, analysts  say this was clearly part of the president’s re-election efforts.

Obama criticised Romney in Cincinnati for claiming to work hard to ensure China’s compliance to fair trade standards but had  made money by investing in companies which left the US to set up in China.

Romney on the other hand took responsibility for the trade action saying that had he known his advertisement lashing out at the president’s record on China would have caused action to be taken, he would have released it sooner.