SinoDefence Forum

antimatter

Amazing, China has its own rights to not export its own raw earth materials. EU and US are filing aginst China for not exporting those materials.. outrageous!
People have the rights to not sell their own stuffs. What in the world is coming to that force someone to sell their own. It's like highway robbery. Amazing. Shsshh WTO is about preventing protectionism not about forcing others to sell their stuffs.


EU, US to take China to WTO over export barriers

GENEVA BOUND? : The complaint will reportedly say that Chinese duties and quotas distort the markets for materials used in steel, aircraft, autos and chemicals

REUTERS , BRUSSELS
Friday, Jun 12, 2009, Page 11
The EU and the US will take action against China at the WTO this month over export restrictions on around 20 industrial raw materials, EU and industry sources said.

The sources said Brussels and Washington would formally request consultations with Beijing on the issue on June 22.

If these talks fail, the next step would be to request that a WTO panel hear the complaint. Such a step could prove costly for both sides in terms of litigation.

The action is expected further to damage already brittle trade relations with China. Trade disputes between Brussels and Beijing are on the rise since the EU’s trade deficit with China has ballooned. Brussels has imposed a number of anti-dumping tariffs on imports of Chinese goods ranging from shoes to steel products.

EU exports to China rose to 78 billion euros (US$106.3 billion) last year from 26 billion euros in 2000, while imports from China rose to 248 billion euros from 75 billion euros over the same period.

The EU and US say China has continued to restrict exports of raw materials used in steel, semiconductors, aircraft and other products despite Beijing’s pledge to eliminate taxes and charges on exports when it joined the WTO in 2001.

The materials expected to be covered by the case include yellow phosphorous, antimony, bauxite, coke, fluorspar, magnesium carbonate, molybdenum, rare earths, silicon, talc, tin, tungsten and zinc.

“China has been placing unfair export quotas and taxes on these raw materials which are distorting the global market and hindering European and US companies,” an EU source said.

“It is violating its commitments as a member of the WTO,” the source said.

The sources said the list of materials had yet to be finalized by Brussels and Washington. The number “will be in the region of 20,” one source said.

The European Commission will inform member states at a meeting today of its decision to challenge China at the WTO.

“Member states, notably Germany and France, have been chomping at the bit for over a year to mount a case,” a diplomat familiar with preparations for today’s meeting said.

European and US steelmakers accuse China of giving its own steel companies an unfair advantage by restricting exports of coke and other materials used to make steel.

European industry also has objected to China’s use of export curbs to drive down domestic raw material costs at the expense of foreign producers.

Europe’s chemical sector is particularly unhappy with Beijing’s decision last year to impose a 120 percent tax on yellow phosphorous.

Phosphorus is crucial for the chemical industry and is used in many products including fire extinguishers and detergents.

Taipei Times - archives

Engineer

And you are surprised? The west has been like this since forever. In their mind, if they demand, China must comply.

China should ban the export of rare-earths altogether. Since western nations don't sell high-end technologies to China, there's little reason for China to sell the raw materials that make those high-end technologies.

antimatter

I am very shocked by such behavior, you can't force someone to sell their stuffs against their own wills. That's a fundamental rights.

It reminds alot of the Opium War period. Forcing someone to Buy and Sell.
But that's Colonial Era long long ago...

Engineer

If you count the amount of things that the west tries to coerce China to do, the list would be very long. Apparently, when it comes to China, rights don't apply anymore.

When I read this thread, Opium War was the first thing that came to my mind. White it might have happened long long ago, that doesn't mean much has changed since then.

panzerkom

this could have gone to the "too funny to be true" category except if you think about it, it kinda makes sense.

the reasoning being this: if a chinese company producing high-tensile steel can get some rare earth metal for $100, whereas an EU or american company has to pay $220 for the same amount of raw material, it would give the chinese company an unfair competitive edge.

with that said, i don't have a problem with china trying to protect its own natural resources. i guess a better way is to pass a legislation limiting the TOTAL amount of rare earth metal that can be mined per year, period.

and please please please fix the safety record in the mining industry. PLEASE.

antimatter

I think this is pretty outrageous thing can still happens like this nowadays.
I guess those western imperialism and colonial instincts from their forefathers never die away.

If China backdown on this issue, then I would lose all the respect for it. This is a fundamental rights. It can't get more fundamental than that.

If it can't defend this then why bother to talk about beefing up their defense, building more weapons, all become meaningless in my opinion.

Engineer

The reason is the west have been able to get rare-earth metals for almost nothing due to the furious competitions between providers in China. Now the Chinese government is doing something to protect its strategic assets, the west complain because they can't get those materials for "free" anymore.

The west has stocked up a huge quantities of rare-earth materials. They will get by even if China completely bans the export of rare-earth materials.

antimatter

The issue of being competitive is pale and insignificant in comparison to fundamental rights of not selling one's own stuffs against one's will.

Engineer

There is more than that. These materials are the very same ones that other countries put into their weapons, weapons that one day could be used against China. Nothing short of a complete ban on the export of these materials would earn my respect.

Finn McCool

The WTO is used by all parties to screw each other over. The US and EU do it to each other frequently. China wanted to get in. They will do the same sort of thing, if not in retaliation for this, then on something else.

__________________
Battles are won by slaughter and maneuver. The greater the general, the more he contributes in maneuver, the less he demands in slaughter.
-Winston Churchill

pla101prc

wow, you have got to be sh*ting me,how do they expect to have a case in this one?

panzerkom

yup, that's right. america and the EU have been fighting over agricultural subsidies forever.

Engineer

And let's not forget about the quarrel involving Airbus and Boeing.

antimatter

I think this case is way more outrageous than the agriculture and airplane cases. Unprecedented.

How can you blame someone refusing to sell? Why can they not change their tech so they won't depend on those rare elements?

can you blame a girl for not selling you sex? She might sell herself to others but she definitely has the choice to turn you down.

bladerunner

They are also selective on uranium procurement by certain countries