"China to Investigate US Car Subsidies"

China sends a message:

China to investigate US car subsidies, by Sarah O’Connor: China is preparing to launch a trade investigation into whether US carmakers are being unfairly subsidised by the US government...

The move comes at a time of heightened trade tensions between the two countries after the US imposed duties on Chinese tires last month. Many warned this would prompt Beijing to retaliate.

Few vehicles are actually exported from the US to China, but the move would have symbolic power by turning the tables on Washington. ... The investigation could lead to import duties. ...

China has already told the US that it has received a petition for an investigation, which ... would formally launch on Wednesday. Before that, the two countries will negotiate. Top US government officials are already in China for trade talks this week, and Barack Obama, US president, is due to visit the country next month.

China had notified the US it had received anti-dumping and countervailing duty petitions on cars, a spokeswoman for the United States Trade Representative said.

World Trade Organization rules require China to invite the US to consult on the countervailing duty petition before initiating any investigation... The countries expect to consult over coming days.  ...

China has received an anti-dumping petition as well, which asks for investigation into whether US car exports are being sold at unfairly low pries. ...