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GENEVA (AP) — The World
Trade Organization ruled Monday that China unfairly limited exports of
nine raw materials to protect domestic manufacturers.
A WTO appeals body rejected
China's appeal of an earlier ruling in July that concluded the Asian
economic powerhouse had violated international trade rules. The appeals
body largely sided with the United States, European and Mexico, which had
taken issue with Chinese restrictions on its exports of nine materials
used widely in the steel, aluminum and chemical industries.
They had complained that
China drives up prices on overseas shipments of the materials by setting
export duties, quotas and licensing requirements on them, giving the
country's manufacturers an unfair edge over competitors. But China had
argued that its export limits were needed to protect the environment.
The ruling affects China's
exports of certain forms of bauxite, coke, fluorspar, magnesium,
manganese, silicon carbide, silicon metal, yellow phosphorous and zinc. In
it, the WTO appeals body says China must now "bring its export duty
and export quota measures into conformity with its WTO obligations."
The issue has sparked
tension with some of China's major trading partners. In a statement, U.S.
Trade Representative Ron Kirk called the ruling "a tremendous victory
for the United States — particularly its manufacturers and
workers."
He called it a decision that
"ensures that core manufacturing industries in this country can get
the materials they need to produce and compete on a level playing
field."
The European Commission said
in a statement that while the case requires China to comply, the EU
"continues to be deeply troubled by China's use of export
restrictions" for other rare earth and industrial raw materials.
China's WTO mission in
Geneva said it "deeply regrets" that the appeals body upheld
major parts of the earlier panel's conclusions, but noted that some other
aspects were reversed. It vowed to abide by the WTO findings.
But it explained that
Chinese government had in recent years "reinforced its administration
on certain resource products, especially the 'high-pollution,
high-energy-consuming and resource-dependent' products" to protect
the environment and conserve natural resources.
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