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| World Trade Organization (Photo credit: Wikipedia) |
As President Obama and GOP challenger Mitt Romney traded jabs over who would best manage economic relations with China, the United States alleged in a WTO complaint that the Chinese government provided its auto parts makers with hundreds of millions of dollars annually in improper export subsidies. The political sparring in the United States comes at a time when China is confronting political challenges of its own as a new leadership prepares to take over. The country’s rapid expansion has cooled, putting the ruling Communist Party at risk of missing economic growth targets — and probably curbing any appetite for the sort of reforms demanded by Washington.
Although China has been encouraged to rely more on its domestic consumer spending for growth, exports remain central to the country’s economic strategy, and they have been hit by the economic crisis in Europe and the ebbing world recovery. The country also is mired in a territorial dispute with Japan that has disrupted factories, retailers and tourism in the face of public protests.
China’s auto parts exports have risen tenfold in the past decade, to around $70 billion annually, according to U.S. officials. The country is now the fourth largest foreign supplier to the U.S. auto industry, providing around $10 billion in parts each year. ... Continue to read.
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