China to Pursue Trade Case Against US Automakers

China has told the U.S. that it will take steps that could lead to higher tariffs on imports of autos made by GM, Chrysler and Ford.

Steve Collins, president of industry trade group the American Automotive Policy Council, said Wednesday that U.S. officials have told the three Detroit automakers that China is expected to begin an investigation under anti-dumping laws into their business practices as soon as next week.

If the investigation concludes that the companies receive government subsidies, or sell products in China at below-market prices, China could slap tariffs on U.S. auto imports.

The move is the latest trade dispute between the two countries, which are already fighting over steel pipes, chicken products, and pirated movies and music. The trade spats worsened after the Obama administration last month announced up to 35 percent duties on Chinese-made tires, to be imposed for the next three years.

The U.S. auto companies export only about 9,000 cars to China annually, Collins said. GM manufactures and sells more than a million cars a year in China, though those sales wouldn't be affected. Mercedes-Benz, BMW and Nissan also export cars to China from plants in the United States, but those won't be included in the investigation, Collins said.

GM and Chrysler have received billions of dollars in aid from the government's $700 billion bailout fund, though Ford has not.

An e-mail to a spokeswoman for U.S. Trade Representative Ron Kirk was not immediately returned. U.S. trade officials, including Kirk and Commerce Secretary Gary Locke, are currently in Hangzhou, China for high-level economic talks. President Obama will make his first visit to China on Nov. 15-18.

Greg Martin, a spokesman for GM in Washington, said GM wanted to study the documents before commenting. Ford spokesman Mike Moran and Chrysler spokeswoman Linda Becker deferred comment to the trade group, and messages were left for two Chrysler spokeswomen Wednesday evening.