US Scores Major WTO Victory Against China

The Hill reports:

The United States, European Union and Mexico scored a major victory over China at the World Trade Organization on Tuesday as the WTO found China had illegally constrained its exports of raw materials.

The policies had the effect of reducing prices for Chinese downstream products and increasing costs for U.S. manufacturers.

When China joined the WTO it had agreed to stop restricting the export of key materials, including those used in steel and chemical manufacturing. The WTO found China has broken its commitments and failed to justify this using existing exemptions in the WTO texts.

“China’s extensive use of export restraints for protectionist economic gain is deeply troubling. China’s policies provide substantial competitive advantages for downstream Chinese industries at the expense of non-Chinese users of these materials,” U.S. Trade Representative Ron Kirk noted in a statement.