Union targets China on trade

WASHINGTON—The United Steelworkers union formally requested Thursday a U.S. trade investigation into China's policies to support its burgeoning green-technology sector, in a case that could end up before the World Trade Organization.

The petition, filed with the U.S. Trade Representative's office, accuses China's government of providing hundreds of billions of dollars in subsidies and other means of support to provide an unfair advantage to local firms.

"We believe these practices have enabled China to emerge as a dominant supplier of green technologies," Steelworkers President Leo Gerard told reporters.

He said the wide-ranging measures by the Chinese government violated global trade rules and posed a direct threat to the Obama administration's focus on creating green jobs and doubling exports over the next five years.

The union, which has been a major agitator against Chinese trade policies, is hoping the Obama administration will take up the case and potentially file a WTO complaint against China.

The administration has 45 days to decide whether to investigate the allegations of unfair trade practices and a year to complete the probe and determine a course of action.

A USTR spokeswoman said late Wednesday that the office would review the petition.

"USTR has been discussing issues surrounding China and green technology with the steelworkers and with other stakeholders, and will continue to do so," she said.

The 5,800-page petition covers five major areas that the union alleges violate WTO rules: restrictions on access to critical materials, investor-performance requirements, discrimination against foreign firms and goods, and export and domestic subsidies.

The steelworkers union has been among the most active critics of China trade policy, with some success. President Barack Obama decided in the union's favor last September in a landmark case to impose a special safeguard provision to impose tariffs on Chinese tire imports. The group has also brought several successful countervailing and antidumping cases against Chinese products.

Amid increasing calls in Congress to take action against China's tightly managed currency policy, the Obama administration sent a high-level delegation to Beijing over the weekend to ease tensions on trade and other issues.