US administration says new China auto tariffs violates WTO rules

THE Obama administration has launched a WTO challenge of Chinese tariffs on US automotive imports, just as the president plans to campaign in key election swing states with strong auto manufacturing hubs, reports London's Financial Times.

"As long as we are competing on a fair playing field, we are doing just fine - and I am going to make sure the competition is fair," President Barack Obama told a rally in Ohio, which like Michigan, has a strong automotive industry.

China argues that the US government bailout of its automotive sector is an illegal subsidy under World Trade Organisation (WTO) rules, thus justifying counterveiling tariffs, said the report.

But the US argues that Chinese tariffs attacks 92,000 vehicle exports worth US$3.3 billion and has launched an "enforcement action", involving a demand for formal consultations on the matter with China under WTO rules.