Since 2000, the US has closed 18 aluminum smelters/makers, leaving 7. Not all of them are producing at capacity. China is adding capacity. Hmmmm. The Obama administration filed a complaint Thursday with the World trade Organization over subsidies it says Beijing provides to the country's vast aluminum industry. This act is a clear escalation of tensions with China as Mr. Trump prepares to take office. The complaint accuses China of providing low cost loans to Chinese producers to assist in upgrading facilities and expanding capacities. Producers also benefit from low cost energy in the form of cut rate coal prices and low electricity prices. Late last year, Chinese producer China Zhongwanf Holdings Inc. came under scrutiny for evasion of tariffs in 2010.
The WSJ reported that founder Liu Zhongtian had evaded tariffs by stockpilinh aluminum in Mexico. That stockpile has since been sent to Vietnam. Mr. Trump's pick for trade representative, Robert Lighthizer has made a career of arguing for trade barriers when partners break the rules, which China has clearly done. Any trade enforcement action would be the 16th during Pres. Obama's administration. Other complaints include commodities such as copper and steel. The complaint was based, in part on a year's worth of research.
Most recently, the Obama administration alerted trade officials to semiconductor issues, alleging that China is trying to steal secrets that could have implications for national security and defense in the USA.
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