U.S to file WTO complaint against Chinese aluminium subsidies

The Obama administration is expected to file a complaint on Thursday with the World Trade Organization (WTO) against China over aluminium subsidies, as reported by Wall Street Journal on Wednesday.

The world's two largest economies are expected to affect by the WTO complaint, since President-elect Donald Trump will take the oath of office next week to cut U.S. trade deficits with China as a top priority.


The U.S. Trade Representative's office will file official complaint for allowing cheap loans from Chinese banks as well as giving subsidized electricity, coal and alumina to Chinese Aluminium manufacturer.

According to sources, these subsidies will help to increase china’s aluminium production further and harm American aluminium companies and their workers.
In October 2016, two U.S. senators from Ohio, that houses several U.S. aluminium producers, and six other senators urged for a WTO case against China's aluminium trade practices. The case is actually a follow up on that.

"When China drives down aluminium costs by cheating, Ohio workers and manufacturers pay the price," said Sherrod Brown, an Ohio Democrat.

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He further commented: "Thousands have lost jobs because of unfairly subsidized aluminium from China that has flooded the market and led to overcapacity, and it’s past time we get tough on these violations before more American workers suffer."

This complaint against China is the 16th one to have been put in front of WTO during the eight years of the Obama administration.

In the recent years, production of Chinese aluminium has increased significantly and presently it produces more than half the world's aluminium, causing the closure of about 9 U.S. aluminium smelters and the loss of 15,000 jobs.