U.S. Trade Union accused China of illegally subsidizing auto parts industry

According to reports, in the face of the sluggish employment situation in the United States, some union groups or members of the United States did not examine the impact of changes in the domestic economic structure on the manufacturing industry, but have repeatedly tried to transfer responsibility to China. A U.S. trade union group accused the Chinese auto parts makers of providing a large amount of “illegal subsidies” on January 31, 2012, posing a “threat” to millions of jobs in the United States. Some US lawmakers also called on the government to reduce imports of auto parts produced in China and investigate the situation.

According to a report from AFP on February 1, 2012, the American Manufacturing Alliance (AAM) and several senior politicians jointly initiated the above actions. They warned that China’s “illegal subsidies” are reversing the gradual recovery of the US auto industry. AAM claims that China’s trade violations have “killed” 400,000 jobs in the US automotive supply chain, and that more than 1.6 million jobs are under threat.

“At present, the recovery momentum of our auto industry employment has not been completely destroyed. The United States is now very much in need of federal action to challenge (China’s) these violations,” said Paul AAM Executive Director.

According to reports, AAM released a total of three reports, accusing China of targeting the US auto parts industry by supporting its own manufacturing industry. The organization claims that their findings provide "very credible" evidence that China's actions violate WTO rules.

According to British Reuters news, several US lawmakers are also exerting pressure on the Obama administration to restrict the import of auto parts from China, and urge the U.S. government to initiate lawsuits against China in the WTO, or the U.S. Department of Commerce to initiate investigations. According to reports, these actions may lead to tariff penalties for auto parts produced in China. According to reports, Obama said last week that he is creating a new system that "suppresses" unfair foreign trade transactions between China and other countries in the world.