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    Is the U.S.-China Trade Battle Politically Motivated?

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    IBTimesTV

    by IBTimesTV

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    The United States filed a request for consultations with the World Trade Organization's Dispute Settlement Body on Monday concerning China's subsidies to its automobile and automobile-part exporters, while China filed a complaint against the United States about its breach of the WTO rules in its amendment to the Tariff Act of 1930 (GPX bill).


    Some analysts said the sudden charge brought by the United States was closely related to Barack Obama's undergoing re-election campaigns in powerhouses of auto industry such as Ohio, Michigan and the entire mid-western region, which are crucial to his re-election. To draw the swing voters of those regions, the U.S. administration took the opportunity to put China on WTO "trial".


    But other analysts held different opinions, saying the trade frictions between the two countries were byproducts of ever growing U.S.-China trade relations. The U.S. congress had been imposing pressure on China over the country's most-favored-nation-treatment on a yearly basis before China joined the WTO. And such pressure has never been reduced since China's accession to the WTO.


    So far China has not responded to the U.S.'s request for consultations.