Good reputation has filed a consultation request on China's auto and auto parts export subsidies

U.S. Trade Representative Ron Kirk announced in a statement on the 17th that the United States has initiated consultations with the World Trade Organization to discuss the Chinese government’s subsidies for the “export base” of automobiles and parts and components.

Kirk issued a statement that day that based on public documents, from 2009 to 2011, the "export base" provided China's auto and component exporters with subsidies of at least US$1 billion. These subsidies provide an unfair competitive advantage for China's auto and parts manufacturers and are prohibited under the WTO rules.

According to WTO rules, if consultations fail within 60 days from the date of the consultation, the United States can ask the WTO to establish a dispute resolution panel on this matter.

The statement said that the United States also asked the WTO on the 17th to set up a dispute resolution panel on China’s anti-dumping and anti-subsidy duties on some vehicles in the United States.