China defends export restrictions

BEIJING, June 25 (UPI) -- China, responding to a U.S.-EU complaint about its export restrictions, says its policy is consistent with World Trade Organization rules.

The United States and the European Union have complained to the WTO that China's limits on exporting some of its raw materials are unfair.

China's Xinhua news agency quoted an unnamed Commerce Ministry official as saying the export restrictions on commodities such as bauxite, coke, magnesium, zinc and silicon metal are designed to protect the environment and natural resources.

The complaint says these restrictions create unfair advantages for Chinese industries and distort world competition.

"China's policies on these raw materials put a giant thumb on the scale in favor of Chinese producers," U.S. Trade Representative Ron Kirk was quoting as saying Tuesday.

The European Commission says China's move to reduce exports of these items could affect 4 percent of EU's industrial output, or 500,000 employees. The EU imported 4.5 billion euros ($6.3 billion) worth of these materials from China in 2008.

"Export restriction on these materials was in accordance with China's aim to establish an environment-friendly and energy-saving society," Zhao Jinping of the Chinese Cabinet told Xinhua.

He said Western countries should not complain about China's export policies, while asking China to reduce emissions and save energy.

Under WTO's dispute settlement rules, China, the United States and the EU will have a 60-day period to consult and if no solution is found, the plaintiffs can seek a WTO panel for a formal ruling.