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TRADE WARS
China appeals WTO ruling on raw materials exports
by Staff Writers
Geneva (AFP) Aug 31, 2011

China has appealed against a World Trade Organisation ruling that it illegally restricted exports of key raw materials, the global trade body said Wednesday.

"China notified the Dispute Settlement Body, which consists of all WTO members, of its decision to appeal the panel reports," the WTO said.

"The Appellate Body has up to three months to conclude its report," it said.

The appeal is against a WTO decision reached in July which upheld complaints by the United States, European Union and Mexico, that China had failed to abide by accession commitments when it imposed quotas and duties on several types of mineral exports.

The complainants charged that export quotas and duties imposed by Beijing on the raw materials were illegal and against commitments China made when it joined the world trade body.

The July 5 WTO ruling applies to elements including bauxite, coking coal, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc, all key industrial materials.

WTO arbitrators backed the complaints, ruling that China had failed to abide by its accession commitments when it imposed quotas and duties.

They rejected Beijing's arguments of conservation concerns as China failed to prove that it imposed export restrictions in tandem with limits for domestic consumption of the same raw materials.

Earlier this year Beijing also caused an international outcry after it moved to tighten its grip over rare earths -- 17 elements critical to making many high-tech products -- including slashing exports and imposing higher taxes.

China, the world's largest producer of rare earths, also cited environmental concerns and domestic demand for tightening restrictions on the key ingredients for making everything from iPods and wind turbines to missiles.




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China's Baosteel H1 net profit drops on costs
Shanghai (AFP) Aug 31, 2011
Shares in Baoshan Iron and Steel Co fell 1.5 percent Wednesday after the Chinese giant posted a 36.9 percent drop in first-half net profit due to soaring raw material costs and weaker demand. The Shanghai-listed unit of Baosteel Group - China's second largest steel maker by output - earned 5.08 billion yuan ($794 million) in the first six months, down from 8.05 billion yuan a year earlier, ... read more


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