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Beijing may face WTO action on exports

(China Daily)
Updated: 2009-06-12 15:55

The European Union (EU) and the United States could take action against China at the World Trade Organization (WTO) this month over alleged export restrictions on around 20 industrial raw materials, said EU and industry sources.

The insiders said Brussels and Washington plan to formally request consultations with Beijing on the issue on June 22. If the talks fail, the next step would be calling for a WTO panel to hear the complaint.

The EU and the US say China is restricting exports of raw materials used in steel, semiconductors, aircraft and other products, despite Beijing's pledge to eliminate taxes and charges on exports when it joined the WTO in 2001.

Related readings:  New world trade deal by 2010: WTO chief  China, US each like WTO ruling  Exports plunge 26.4% in May, down for 7th month  China announces further support policies for exports

Some of the materials expected to be covered by the case include yellow phosphorous, antimony, bauxite, coke, fluorspar, indium, magnesium carbonate, molybdenum, rare earths, silicon, talc, tin, tungsten and zinc.

The quantity of different raw materials "will be in the region of 20", one source said.

"China has been placing unfair export quotas and taxes on these raw materials which are distorting the global market and hindering European and US companies," an EU source said.

The EU is China's largest trading partner. Trade volume between them grew to $425.58 billion in 2008, an increase of 19.5 percent on the previous year.

China promised last month to send companies on multi-billion dollar spending sprees in Europe and called on the EU to resist trade barriers.

Vice-Premier Wang Qishan told EU officials on May 7 that the Chinese government will send several business delegations to Europe to repeat a February shopping trip where they spent $13.6 billion on contracts in Germany, the United Kingdom, Spain and Switzerland.

Reuters