US to probe accusations that China has unfair advantage in green energy market

The Obama administration has decided to launch an investigation into various Chinese practices that a major US union says are robbing American workers of jobs in the burgeoning field of clean energy such as solar and wind power.

US trade representative Ron Kirk said in announcing yesterday's decision that the administration considered the whole area of green technology as vitally important to America's future economic prospects.

The United Steelworkers union filed a 5,800-page petition last month contending that the Chinese government was giving Chinese companies unfair advantages over US firms through the use of government subsidies that are prohibited under global trade rules.

The US deficit with China rose 8.2 per cent in August to an all-time high of $28 billion, surpassing the record $27.9bn set in October 2008. So far this year, the US deficit with China, the largest imbalance with any country, is running 20.6 per cent above the 2009 pace.