China defends export

restrictions
China has defended its export curbs on some raw
materials used to make steel, aluminium and chemical
products.
Coke is one of the materials a the
On Wednesday, the US, with the EU and Mexico, said they heart of the dispute
had asked the World Trade Organization to set up a dispute
settlement panel on the matter.

They say China's export policy drives up world prices for the materials.

But China's Ministry of Commerce told AFP the aim of the "measures on some raw materials is
to protect the environment and our limited resources".

Protectionism claims

The US says the materials at the heart of the dispute are bauxite, coke, fluorspar, magnesium,
manganese, silicon metal, silicon carbide, yellow phosphorus and zinc.

The raw materials case has an impact on billions of dollars of global trade, the US says.

"Working together with the European Union and Mexico, we tried to resolve this issue through
consultations, but did not succeed," said Debbie Mesloh, a spokeswoman for the office of the
United States Trade Representative. The products being disputed
actually form a very small
There are a number of simmering trade disputes between percentage of Sino-US and Sino-
the two countries covering several areas, with counter- EU trade
claims of protectionism and a large US trade deficit with
China. China's Ministry of Commerce

The US wants to see Chinese restrictions lessened on US agriculture, pharmaceuticals,

telecommunications and business services, and improved protection of intellectual property
rights and co-operation on clean energy technology.

And in September the US imposed punitive duties of up to 35% on imports of Chinese-made

tyres.

China responded with an "anti-dumping" probe into US car parts and chicken meat imports.

Recently China also announced it would investigate suspicions that the three big US carmakers
were getting government subsidies, or selling their products in China at less than the cost of
production.
Sustainable development

The latest complaint to the WTO came after consultations failed to resolve the dispute.

It comes after trade talks last week between the US and China, in which Beijing agreed to reopen
its market to imports of US pork.

Referring to the minerals dispute, a Chinese commerce ministry statement said: "The regulations
conform to the needs of China's own [sustainable] development, while also advancing China's
efforts towards the sustainable development of the global economy."

It added: "The products being disputed actually form a very small percentage of Sino-US and
Sino-EU trade."