By NBC News staff and wire reports
The United States threw down the gauntlet against China on?Monday, accusing the country of distorting trade by subsidizing exports of auto parts.
In a statement announcing a request for dispute settlement consultations at the World Trade Organization with China, The United States Trade Representative Ron Kirk?said the subsidies give China an unfair advantage to its auto parts exporters which compete with?producers based in the U.S. and other countries.
"We insist upon having a level playing field on which our world-class manufacturers can compete. Today we are continuing to make it clear to our trading partners that we will fight to support each job here at home that this sector supports,? Ambassador Kirk said.
The announcement comes a few hours before Kirk's boss, President Barack Obama, was set to discuss the dispute in a campaign stop in the key battleground state of Ohio,?home of many of the nation's auto parts manufacturers.
The New York Times reported Monday that the domestic auto parts industry lost about half of its jobs from 2001 to 2010. Some of the jobs losses were due to a shrinking economy and lower demand for autos (which has since begun to pick up). Some has been due to automation.
But the Times quoted an unnamed administration official as saying that imports of Chinese auto parts frew by seven-fold over the same time period. The official asked to remain anonymous because of White House policy against discussing a new policy before it is announced officially.
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The U.S. Trade Representative's office said it was also taking the next step in a separate World Trade Organization case it launched in June against Chinese duties on U.S. auto exports.
The USTR's announcement came not long after China filed a complaint at the WTO Monday to challenge a new U.S. law on "countervailing duties," or tariffs intended to combat export-promoting subsidies.
The complaint potentially affects close to 30 products that have previously been targeted by U.S. duties, a trade official familiar with the case said.?
The complaint was aimed at a U.S. law passed in March which allowed the United States to apply countervailing measures to Chinese exports retrospectively.
Commerce Ministry spokesman Shen Danyang said China hoped the United States could "correct its mistaken policy and appropriately resolve China's concerns".
In a brief statement on the initial filing by China, the WTO said the products included steel, tires, magnets, chemicals, kitchen appliances, wood flooring and wind towers. China will file a full complaint with more details in the next few days.
Under WTO rules, China's filing of the complaint has set the clock ticking on a 60-day period during which the United States can try to settle the dispute in bilateral talks. After that, China could ask the WTO to adjudicate.
Reuters contributed to this report.
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