(PTI): The US and the EU have lodged a joint case at the World Trade Organization against China for “restricting raw materials exports” to supply its domestic market.
They accused the Asian giant of pursuing a “troubling” industrial policy in the latest sign of hostility over trade.
Washington says Beijing is providing substantial competitive advantages for its domestic industries to use important materials like bauxite, magnesium, silicon metal, and zinc.
“China’s measures appear to be part of a troubling industrial policy aimed at providing substantial competitive advantages for the Chinese industries using these inputs,” said US Trade Representative Ron Kirk.
US officials say the policy is against WTO rules that have been designed to discipline export restraints.
Yet, contradictorily, the European Union has taken the same measures against China repeatedly over the past few years without success.
“The Chinese restrictions on raw materials distort competition and increase global prices,” EU Trade Commissioner Catherine Ashton complained.
China overtook the United States as the world’s second-largest exporter in the middle of 2006 according to WTO figures.
