This feature explores the subsidies paid by China’s government to Chinese producers of autos and auto parts. U.S. lawmakers have raised concerns that the subsidies are unfair and have filed a complaint with the World Trade Organization (WTO) arguing that the subsidies have effectively hurt U.S. auto and auto parts producers. While some in the U.S. auto industry support the complaint, others are concerned that it could jeopardize their investments in the Chinese market. Discussion of the feature can begin with the following questions:
a). In your opinion, could U.S. complaints about China’s policies toward its auto exports actually harm U.S. producers more than they help? Should the U.S. dismiss its complaint with the WTO?
b). As a U.S. consumer, do you support China’s subsidies on autos and auto parts? Does your response change if you work for a U.S. automaker? Why or why not?
This feature explores the subsidies paid by China’s government to Chinese producers of autos and auto...