S President Barack Obama is expected to file a new trade complaint against China, accusing it of illegally subsidising exports of cars and car parts. Mr. Obama will announce at the World Trade Organization (WTO) action against China when he visits the US state of Ohio during a campaign stop later today. In the latest wrangle, the Obama administration clams that China's illegal subsidies in the car sector totalled one billion dollars between 2009 and 2011.

The US President believes that the subsidies encourage the US to outsource car and car parts production to China, with these products then exported into the US or other nations. Obama's move is seen as political. Last week, President Obama's main Republican rival Mitt Romney accused Mr Obama of being too soft on China. Almost immediately after Mr. Obama's plans were revealed, China requested formal negotiations with the US over extra duties imposed on Chinese tyre imports.