Obama brings new trade case against China for re-election

Edited and Translated by People's Daily Online

On March 12, the Associated Press cited senior Obama administration officials as saying that the United States would bring a new trade case to the World Trade Organization on March 13 along with the European Union and Japan over China’s limits on exports of rare earth minerals.

The United States asked the WTO to facilitate talks with China over its curtailment of exports of rare earth minerals, according to the officials, who requested anonymity in order to speak ahead of the president. The move is aimed at pressuring China to lift restrictions on exports of rare earth minerals and leveling the playing field for U.S. companies. The senior administration officials said that Beijing’s export restrictions give Chinese companies a competitive advantage by providing them access to more of these rare materials at a cheaper price, while forcing U.S. companies to manage with a smaller, more costly supply. They suggest that it is an unfair trade practice against rules established by the WTO.

The U.S. economy is recovering slowly, and economic problems have become a major obstacle to Obama’s re-election bid. Obama recently lashed out at China, saying that its economic policies and “unfair trade practices” have hindered U.S. employment and economic growth as well as the development of U.S. companies. In order to win more votes, certain U.S. politicians have politicized China-U.S. trade disputes, and even threatened a trade war with China, causing great concern among far-sighted Americans.