President Barack Obama and President Hu Jintao of China.
HONG KONG (CNNMoney) -- The Obama administration will file a complaint Monday with the World Trade Organization, alleging that China has illegally subsidized automotive exports and undercut American suppliers.
The complaint accuses China of providing $1 billion in illegal subsidies to auto and auto-part exporters between 2009 and 2011, according to a senior administration official.
The administration says the benefits provided to Chinese companies violate a WTO prohibition on "export-contingent subsidies."
Chinese cars are not yet common in the U.S., but exporters have managed in recent years to quickly ramp up their shipments of auto parts to the world's largest economy.
The White House estimates that up to 60% of China's automotive industry exporters benefit from the subsidies, making it hard for American companies to compete.
Related: China growth forecasts shrink as economy stumbles
In a related case, the administration launched a complaint against China with the WTO in July over $3 billion in duties Beijing placed on U.S. auto exports.
The move by the White House takes place as President Obama once again steers his campaign to Ohio -- a state saturated with auto part suppliers and industry workers.
Manufacturing, the auto industry and its bailout are all issues central to the presidential campaign, and Ohio is crucial to the president's re-election plans.
While the complaint comes just months before Election Day, frictions between the U.S. and China over trade are not new. The automotive industry has been a particular hot spot, with both sides trading barbs in recent years.
Mitt Romney, the Republican nominee, has taken a combative stance toward China. The former Massachusetts governor has pledged to label China as a "currency manipulator" and hit the country's exports to the U.S. with tariffs.
Some observers worry that if Romney follows through with his plans, a trade war could erupt between the two economic mega-powers.
-- CNN's Jessica Yellin and Dan Lothian contributed to this report. 
First Published: September 17, 2012: 4:53 AM ET
17 Sep, 2012
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Source: http://rss.cnn.com/~r/rss/money_latest/~3/wBrfkoxDdfk/index.html
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