Obama drives WTO action  over China car subsides
Obama drives WTO action over China car subsides

President Barack Obama will launch a new WTO enforcement action against Chinese car subsidies, countering his Republican foe Mitt Romney's accusations that he is too timid towards Beijing.

Mr Obama will leverage the political power of his office when he makes the announcement later today in swing State Ohio and argue that Chinese practices in the auto sector put US manufacturers at a disadvantage, a White House official said.

"The Obama administration is launching an enforcement action against China at the World Trade Organisation for illegally subsidising exports in their autos and auto-parts sectors," a White House official said.

The official added that China's actions were "putting US auto parts manufacturers at a competitive disadvantage and that is encouraging the outsourcing of auto-parts production to China".

The announcement will be seen as highly political as Ohio is a critical state in the November 6 election, and the home for large numbers of workers in the auto industry and related auto parts sector.

Mr Obama repeatedly touts his decision to offer the sickly US auto industry a government bailout in 2009 - which Mr Romney opposed - as his campaign seeks to capture a state which is vital to the Republican's White House hopes.

The announcement represents something of a political trump card, following days of sparring between the two campaigns over the challenge posed by China's rise as an economic power, and the threat it has posed to the US economy.

An NBC/Marist College poll last week found Mr Romney trailed Mr Obama by seven points in Ohio, following a blizzard of Democratic advertising touting the bailout and critical of Mr Romney's lucrative past life as a venture capitalist.

No Republican has lost Ohio and gone on to win the White House.

With less than eight weeks to go to election day, Mr Romney's performance in State polls, despite the slow economic recovery he blames on Mr Obama, is a grave worry for his campaign.

More than 770,000 people work in the auto industry in the United States.

More than half of those jobs toil in the auto parts sector, which in turn supports millions of positions in linked industries including the steel and plastics sectors.

The West Australian

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