. Space Industry and Business News .




.
CAR TECH
China subsidizing auto parts exporters: US industry
by Staff Writers
Washington (AFP) Jan 31, 2012


A US industry and union coalition accused China Tuesday of sweeping illegal subsidies to its auto-parts sector that threaten to destroy more than a million US jobs.

Launching a campaign to press for trade action against Beijing, the Alliance for American Manufacturing and senior politicians said the Chinese subsidies threaten to reverse the comeback of the US auto industry.

The AAM -- which brings together the US steel industry and the United Steelworkers union -- said alleged trade violations by China have already killed 400,000 jobs in the US auto supply chain, and threaten 1.6 million more.

"It's essential that federal action be taken to challenge these abuses before they completely undermine the job recovery under way in the US auto industry," said AAM executive director Scott Paul.

He said the studies present "pretty compelling" evidence of China's breaking World Trade Organization rules against subsidized exports.

"For US makers, the cost of their inputs is greater than what the Chinese producers sell their products for" in some cases, he said.

The campaign was launched at the US Congress a week after President Barack Obama said he would step up pressure on China and other countries that unfairly subsidize exports and launch a new government body to pursue such cases.

The AAM released three reports that paint China as targeting the US auto-parts sector by supporting its own manufacturers in ways that allegedly violate WTO fair trade rules.

They argued that Chinese auto-parts exports increased more than 900 percent in the decade to 2010 helped by $27.5 billion in subsidies, many of them illegal, and that the government has committed nearly $11 billion more in such support over the next decade.

The also said Chinese parts exporters benefit from the country's policy of keeping the yuan currency tied to the US dollar at an artificially low exchange rate.

This effort is targeted at the US market, they said.

"In auto parts, China runs trade deficits with every other major auto producer, including Japan, South Korea, and Germany. In contrast, Chinas trade surpluses on auto parts with the United States constitutes a notable exception," said Usha Haley of the Economic Policy Institute, who contributed one of the studies.

The result, the studies say, is that while the US auto industry has recovered strongly since being bailed out by the government in the 2008-2009 recession, parts makers continued to weaken.

"US automakers have enjoyed a strong turnaround since the government aided the restructuring of GM and Chrysler, with US-based automakers' sales up 29.1 percent since 2009," one of the studies said.

"However, employment in the auto-parts and tire industry has rebounded at less than half that rate."

Haley also blamed the practices of US carmakers themselves for buying more China-made parts.

"While other foreign auto companies operating in China have linked to auto-parts suppliers back home, US auto companies have cut ties with suppliers in the United States or encouraged them to manufacture in China," she said.

"US global auto strategy currently centers on manufacturing in China and exporting back home. Consequently, China's exports of auto parts to the United States are three times those of its next highest trading destination, Japan."

Paul said AAM was not filing its own trade complaint against China, but that it expected the Obama administration would move by itself with the evidence from the studies.

Obama "opened the door" with his speech last week, he said. "I take the president at his word for this."

"We have delivered to the administration actionable information."

The complaint opened up a new front in US-China trade tensions, after two years of stepped up measures and counter-measures that analysts say look more and more like a trade war.

"I think its more than rhetoric... The fears of a trade war are real," said China economy expert Yukon Huang of the Carnegie Endowment for International Peace, a Washington think tank.

Related Links
Car Technology at SpaceMart.com




.
.
Get Our Free Newsletters Via Email
...
Buy Advertising Editorial Enquiries




Japan car sales rocket 40% on subsidy boost
Tokyo (AFP) Feb 1, 2012 - Japanese automobile sales rocketed more than 40 percent in January after the government restored subsidies for eco-friendly vehicles.

Sales of vehicles with engine sizes above 660cc stood at 263,267 in January, up 40.7 percent on the previous year, the Japan Automobile Dealers Association said.

The figure includes larger vehicles such as lorries and buses as well as cars.

January was the first complete month of sales after Tokyo re-introduced subsidies for eco-friendly vehicles that can cut thousands of dollars from their price tags, in a move aimed at boosting the automobile industry.

Toyota was the biggest overall beneficiary of the move, selling 124,633 vehicles, up 47.1 percent on the previous year, but Honda and Isuzu sales went up proportionately even more, at 59.2 percent and 60.6 percent respectively.

During 2011 Japanese automakers suffered major blows from the country's earthquake and tsunami and flooding in Thailand, which both badly disrupted their supply chains, leading to Toyota losing its global number one spot.

The subsidy measure last ran from June 2009 to September 2010, during which it cost the government $7 billion.

To some extent the subsidies appear to distort the market and the timing of purchases, rather than necessarily creating extra demand. Sales in January 2011, after the last programme ended, were down 21.5 percent on those of January 2010, when it was still in place.



.

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle



CAR TECH
China targeting US auto parts sector: industry
Washington (AFP) Jan 31, 2012
A US industry and union coalition accused China Tuesday of sweeping illegal subsidies to its auto parts sector that threaten to destroy more than a million US jobs. Launching a campaign to press for trade action against Beijing, the Alliance for American Manufacturing and senior politicians said the Chinese subsidies threaten to reverse the comeback of the US auto industry. The AAM - wh ... read more


CAR TECH
Malaysia approves Australian rare earths plant

Harnessing the predictive power of virtual communities

Congolese inventor puts African tablet on sale

SciTechTalk: The smartphone debate

CAR TECH
Brazil to assemble Harris tactical radio

Northrop Grumman Wins Award for USAF Design and Engineering Support Program

Fourth WGS Satellite Sends First Signals from Space

Boeing to Build More Wideband Global SATCOM Satellites for USAF

CAR TECH
Russia Plans to Launch U.S. Satellite in February

Russian launch of Dutch satellite delayed

MT Aerospace wins contract for operation and maintenance of launch facilities' mechanical systems

Proton-M, Dutch Satellite Taken to Launch Pad

CAR TECH
ESA Director General praises UK space innovation

Lockheed Martin-Built GPS Satellites Reach 150 Years of Combined On Orbit Service

LED lights point shoppers in the right direction

Opening of UK site producing the heart of Galileo

CAR TECH
Japan's ANA nine-month net profit down 10%

Stanford aero-engineers debut open-source fluid dynamics design application

Philippines welcomes PAL sale plan

Cathay to buy six Airbus planes for US$1.63bn

CAR TECH
Jumpstarting computers with 3-D chips

Researchers Devise New Means For Creating Elastic Conductors

Cooling semiconductor by laser light

A new class of electron interactions in quantum systems

CAR TECH
NASA Finds 2011 Ninth-Warmest Year on Record

Satellite observes spatiotemporal variations in mid-upper tropospheric methane over China

NASA Sees Repeating La Nina Hitting its Peak

Map project accuses Google users of edits

CAR TECH
China detains seven as water pollution fears widen

Asthma rate and costs from traffic-related air pollution are much higher than once believed

Trafigura director can be prosecuted says Dutch court

Philippine court orders massive dump site closure


.

The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement