THE World Trade Organisation (WTO) has rejected China's claims that its export restraints for several industrial raw materials cover conservation or environmental protection measures following dispute from the US, and latterly the European Union and Mexico.
The decision was considered "a tremendous victory for the United States" said US Trade Representative Ron Kirk and reinforces a rule where the US can compete on a level playing field in the use of raw materials used in steel, aluminium and chemicals industries.
"They can artificially increase world prices for these raw materials while artificially lowering prices for Chinese producers," said the Office of the US Trade Representative which puts pressure on foreign producers to move operations and with it their technologies to China, it added.
The National Foreign Trade Council said the restriction of these materials in everyday products hurts many US technology-based companies and is a "form of protectionism" which creates artificial shortages, raising world prices and undermining the integrity of the trading system.
Once adopted by the WTO dispute body, the Appellate Body will uphold its findings for China to comply with WTO obligations within 30 days.