US Files WTO Case Against China Famous Brands Aid

The new case comes just one month before the Bush administration leaves office on Jan. 20.

The United States has begun a legal challenge at the World Trade Organization against Chinese government programs to increase the sale of Chinese-branded goods around the world, the U.S. Trade Representative's office said on Friday.

"We were disturbed to find that China still appears to be using WTO-illegal measures to promote its exports, ranging from textiles and refrigerators to beer and peanuts," U.S. Trade Representative Susan Schwab said in a statement.

The new case, which began with a formal request for dispute settlement consultations with China, comes just one month before the Bush administration leaves office on Jan. 20.

It also came on the same day the White House announced a $17.4 billion government loan program to bail out ailing U.S. automakers.

The World Bank is forecasting the global economic slowdown to cause world trade to decline about 2.5 percent in 2009, forcing U.S. and manufacturers around the world into a fierce battle for diminishing export sales.

"We are going to the WTO today because we are determined to use all resources available to fight industrial policies that aim to unfairly promote Chinese branded products at the expense of American workers, farmers, ranchers, manufacturers and intellectual property owners," Schwab said.

The U.S. trade deficit with China set a record $256.2 billion in 2007, and could surpass that this year even with the recent slump in world trade.