The US government led a complaint with the World Trade Organization (WTO) against Chinese aluminum subsidy accusing Beijing to break the technical global market share .The complaint, who must rebut Beijing is one that will strengthen the growing trade tension between the two largest economies of the world. Donald Trump having promised that the deficit reduction in the US trade balance with China is a top priority.
The US trade representative announced that the complaint directly concerns the Chinese industry produces aluminum extrusion, which makes those responsible for the violation of WTO rules. Prohibiting subsidies that cause “serious damage” to other members of the organization.
The complaint stated that government-directed loans and coal, electricity and aluminum in the Chinese aluminum industry cause such damage, and reduce international prices and artificially expand the Chinese market share.
The US trade office said that the production capacity of China regarding aluminum increased more than fourfold between 2007 and 2015, while international prices have fallen approximately 46%. China currently produces more than 50% of the world’s aluminum. At the same time the primary US aluminum production decreased 37% despite having increased the overall consumption in the USA. 9 out of 14 American aluminum plants ceased production since 2011 and only one run at full capacity.
By a notice posted on the website of the Chinese Ministry of Commerce said that the US complaint “has no real basis,” vowing to face accordance with WTO rules. “The Chinese aluminum market is a very competitive and in line with market rules Industry” “The relevant loans and commodity market given all completely based on market rules and trade. The so-called problem of subsidies, the US support, there is no “
