【澳大利亚人报】US and Europe at WTO accuse China of limiting exports

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US and Europe at WTO accuse China of limiting exports
http://www.theaustralian.news.com.au/business/story/0,28124,25685716-5018066,00.html

Michael Sainsbury June 25,  2009                                                                                                     

CHINA has been accused of limiting exports of a range of raw materials to benefit domestic manufacturers, in the third case brought against it by the US and Europe at the World Trade Organisation.

The petition, the first against China by the Obama administration, cites the taxes China imposes to limit the export of about 20 different metals and chemicals, giving an unfair advantage to the country's domestic manufacturers.

The action is the latest to highlight creeping protectionism in China, and comes as the country features in an Australian aluminium tubing anti-dumping investigation.

China appeared to further back away last week from its public stance against protectionism by issuing a strong "buy Chinese" edict to government departments that are distributing part of its 4 trillion yuan ($730 billion) stimulus package.

The US steel sector has weighed into the debate, saying China's rising export subsidies are giving Chinese mills a competitive advantage.

"We believe China must comply with WTO rules," US Steel chairman and chief executive John Surma said this week. "We believe subsidisation seriously undermines the global steel industry."

Mr Surma said recent Chinese rebates would increase the country's steel exports.

China is the world's largest steelmaker, responsible for about a third of the world's products. But while demand has slowed, its sector has not experienced the dire slump of its rivals in the US and Europe.

The US and the European Union have made several complaints about trade to China in recent months.

"Hopefully, all of our partners will realise we're serious about this," US trade representative Ron Kirk said in Washington, as he made a joint announcement about the WTO action with EU trade commissioner Catherine Ashton.

"All of us have parroted the words that we don't want to engage in protectionism, but we have to give real meaning to that," he said.

"We are most troubled that this appears to be a conscious policy to create unfair preferences for Chinese industries by making raw materials cheaper for China's companies to get, and goods more economical for them to produce."

An official with the Ministry of Commerce in Beijing told the Xinhua news agency: "China's export policy is in line with the World Trade Organisation rules. Export restriction on some industrial material aims to protect the environment and the natural resources."

The EU and the US have previously complained to the WTO over Chinese duties on imported car parts and restrictions on foreign financial news providers.