China’s curbs on exports of some raw materials to conserve resources may not meet the stated goals while giving Chinese manufacturers an unfair advantage, the World Trade Organisation said on Monday.
The remarks, in a report prepared for China’s two-yearly trade policy review, constituted a rare comment by the WTO’s secretariat on a current dispute between members.
By cutting off exports of some raw materials, China makes them more expensive for foreign manufacturers who use them while making them cheaper for its own processing industry, which is able to sell finished goods abroad more cheaply than foreign competitors can.
China’s restrictions on raw materials sales have been challenged by the United States, European Union and Mexico, and the WTO set up a panel in December to rule on the complaints.
The WTO noted that China has continued to open its markets since joining the global trade body in 2001, and its average tariff is now 9.5 percent against 9.7 percent in 2007.
But it said export barriers have not fallen as fast as import barriers. China uses restrictions such as prohibitions, licencing, quotas, taxes and partial tax rebates to manage certain exports in order to conserve resources and energy, it said.