18 Sep 2012

US accuses China of illegally subsidising car industry

10:11 am on 18 September 2012

A new trade dispute is looming between the United States and China.

US president Barack Obama has made a complaint to the World Trade Organisation, accusing Beijing of subsidising car exports.

The feeling from the White House is that China has once again over-stepped the line, Radio New Zealand's correspondent in Washington reports.

The US says China is illegally subsidising the car industry which is encouraging to out-source production to China and taking away jobs in America.

It is a move Mr Obama hopes will help him look tough on trade rules with the Far East at a time when he is looking to secure union votes ahead of the election in November.

His Republican challenger, Mitt Romney, is accusing Mr Obama of failing the American people over his record on China.

Mr Romney insists he will confront China on its unfair trade practices if elected.