01 Feb, 2012
China has been accused of using ‘illegal government subsidies’ to boost its car part manufacturing industry, by US body, the Alliance for American Manufacturing (AAM).
The AAM claims the alleged practice is detrimental to US industry and firms and that it is to blame for the loss of around 400,000 US jobs in the last decade, with an extra 1.6 million potentially at risk if action against the practice was not taken.
According to the BBC, the executive director of AAM, Scott Paul, said: “China’s blatant use of illegal government subsidies and a web of predatory trade practices on a massive scale are undercutting companies in the US auto supply chain.”
He added: “It’s essential that federal action be taken to challenge these abuses before they completely undermine the job recovery underway in the US auto industry.”