Washington: The Obama Administration has taken China to the World Trade Organisation for alleged violations of trade commitments with the US and other WTO partners.
UNION COMPLAINT: The United Steelworkers union has asked the Obama administration on Thursday to crack down on various Chinese trade practices in the area of clean energy.
GOVERNMENT SUPPORT: The Steelworkers said the Chinese government was providing various types of subsidies to Chinese firms making solar panels and wind turbines in violation of World Trade Organization rules prohibiting such subsidies.
DECISION TIME: The administration will have 45 days to decide whether to open an investigation that could lead to cases being filed against China before the Geneva-based WTO.
The allegations were immediately refuted by China.
The Office of US Trade Representatives (USTR) said it had filed two cases against China at the WTO.
"We are concerned that China is breaking its trade commitments to the US and other WTO partners, both by favouring its one state-owned financial services firm to the exclusion of American credit and debit card companies and by manipulating trade remedy investigations to unfairly restrict exports of American steel," USTR Ambassador Ron Kirk said.
One of the cases requests dispute settlement consultations the first step in litigation regarding China's imposition of antidumping (AD) duties and countervailing duties (CVD) on imports of grain oriented flat-rolled electrical steel (GOES) from the United States.
US-China trade relations could soon nosedive with the dispute reaching the WTO.