China export restriction dispute escalates
China has rejected a World Trade Organisation (WTO) bid to have a panel investigate its raw material exports on suspicion of restricting these exports to benefit local industry at the disadvantage of other countries’ manufacturing industries.
The European Union, Mexico and the USA have requested the WTO investigate incidents where China have allegedly limited materials used to produce steel, aluminium and chemicals. This in turn has driven up world prices for inputs, skewing price competition.
China says restrictions are required to protect the environment and conserve exhaustible natural resources.
Earlier consultations between the parties have failed to resolve the dispute, which led to the calls for a panel investigation. Under WTO rules, China cannot reject a second request for the panel, which is likely to proceed at the WTO’s dispute settlement body next meeting on December 21.
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