Trade tensions rise as US takes on China over car subsidies

The US yesterday launched a new trade case against Chinese car and car-parts subsidies as President Barack Obama stumped for votes in Ohio, a car-manufacturing state that could be decisive in the November presidential election.

Beijing fired back with a complaint against US duties on many Chinese exports, in the latest sign of trade tension between the world’s two largest economies.

The new US case filed at the World Trade Organisation (WTO) targets what Washington said were “extensive subsidies” to Chinese car and car-parts producers in designated regions.