WTO accuses China of restricting export of raw materials

One-sided reflection of European and American opinions the WTO accuses me of restricting the export of raw materials My experts say China's export policy complies with WTO rules, and suggests that a resource tax be levied to reduce criticism from outside the press Xiao Ying Ying Sun Chenhua Beijing, May 31, World Trade Organization (WTO) The third Trade Policy Review Conference of China since its accession was held at the WTO headquarters in Geneva.　　On the same day, the WTO released its China trade policy review, accusing China of restricting the export of some raw materials that could give Chinese manufacturers an unfair competitive advantage.　　My experts pointed out that this report, issued in the name of the WTO, only listened to the interests of the European and American stakeholders, China's restrictions on the export of raw materials to protect the environment and reduce surplus for the purpose of the WTO rules, China may consider the imposition of a resource tax and other ways to circumvent the WTO rules of No legal effect of the review report the WTO report, according to the FT, said, "China's speed of reducing export barriers is less than the country's speed of reducing import barriers." The country still uses various export restrictions, including bans, licences, quotas, taxes and non-full tax rebates for VAT.　　"The effect of these restrictions is only to help Chinese companies push down the price of raw materials used for industrial inputs," the report said, and China's vast restrictions on its exports distort global trade, rather than theoretically protecting the environment and balancing domestic trade. The report, published by Reuters, said the two-year review of China's trade policy, issued by the WTO, made a rare comment on the dispute between Member States.　　However, domestic experts pointed out that the WTO's Trade policy review report does not imply the opening of trade dispute mechanism, and only reflects the interests of some countries in Europe and the United States of the import of resources, legally non-binding. "The WTO review report has no statutory effect, nor is it a verdict or a conclusive document, but refers to a problem."　　"In fact, China's export restrictions are aimed at reducing the export of energy-intensive and other environmentally damaging goods to protect the environment and reduce China's huge trade surplus," Pang, deputy Dean of China's WTO Research Institute, said in an interview with the economic reference newspaper. "WTO cases are more concerned with import restrictions, and the export restrictions are not very important and the regulations are not strict." The issue of export restrictions is likely to be linked to an appeal to the WTO by the US and the European Union last year on China's export restrictions on multiple raw materials.　　"Pang said. Our policy is in line with WTO regulations. The US and Europe have long blamed China for restricting exports of resource products. June 23, 2009, the United States and the European Union on China's restrictions on exports of some industrial raw materials to the WTO to appeal to China under the WTO dispute settlement mechanism to start negotiations.　　Mexico August 21 also submitted a request for consultations. In relation to the above-mentioned countries ' complaints to the WTO, the head of China's Ministry of Commerce said in June 2009 that China has maintained communication and contact with the US and Europe on the export policy of raw materials, and the main purpose of China's export policy is to protect the environment and protect itsResources, China's policies are in line with WTO rules. Legally speaking, "GATT 20th of 1994 stipulates the exception clause of the member Party in fulfilling its obligations of commitment." The 7th clearly stipulates that, provided that the restrictive measures of the Member States are implemented in conjunction with domestic production and consumption restrictions, the member shall be entitled to invoke this exception to take protective measures against the available natural resources.　　"The Beijing WTO Affairs Center experts pointed out.　　And morally, on the one hand, the United States and the European Union have been accusing and pressuring our environmental standards and their implementation, while accusing China of restrictive measures against energy consumption, high pollution and resource-related products. In addition, European and American countries themselves are implementing various export control policies. "America's oil and other mineral resources are largely untapped, relying only on imports to meet the needs of the industry, and the US has a ' domestic supply shortage principle ' for export products that can be banned by domestic legislation when commodity exports are enough to endanger the normal functioning of the domestic economy.　　"The Department of Commerce's Research Institute of the United States, Dr. Rei in the economic reference newspaper reporter interview. Three points recommended to reduce outside criticism "the review system also helps us to become more aware of our own problems, and we should also consider some of the recommendations made in the report, such as the consideration of the report's objective of taxing the production of raw materials in order to achieve environmental protection," he said.　　"Pang said, control the trade link effect is limited, rather than levy the resource tax from the production link control, also can play the effect of protecting the environment."　　Dr Rei that the proposal to levy a resource tax is reasonable, but for strategic resources such as rare earths, simply relying on tax to raise prices may have little impact on export links. He suggested that, first, China can improve the concentration of production links, change the resources of disorderly mining and small mining owners in order to short-term interests of the phenomenon of low prices. "Small ore owners to foreign low-cost export rough resource products, foreign extraction of resources to sell us at high prices, this is actually a disguised predatory resources." Secondly, we should learn from the practices of Europe, America and Japan, and increase the strategic reserve of the resource products. Data show that, because China's basic cost price sales of rare metals, China's rare metal reserves are not much, the future for national defense strategy needs, China can only from the world's second largest source of rare earth resources in the United States to buy.　　Finally, the international pricing of these strategic products should better reflect their scarcity of resources. Background Link: Trade Policy review is a permanent application of WTO to its members, and all WTO members are subject to trade policy review on a regular basis. The aim is to ensure transparency in the trade policies of members and to deepen the understanding of other members of the policies and practices of the members under consideration, and to encourage all members to comply with WTO rules and to honour the relevant commitments.　　China has been deliberating every two years since the World trade volume ranked top four in 2006. The process of trade policy review is generally based on the consultation, the members under consideration submit detailed reports on trade policies and practices. At the same time, the WTO secretariat has prepared a report on the basis of the information available and other relevant members. The members under consideration submitted government reports to the trade policy review bodies, and the secretariat completed the secretariat's report. The fourth phase is the convening of a review conference. Subsequently, the trade policy Review body convened a meeting to consider the two reports. After consultation with the members under consideration, the trade policy review body could opt for the participants in the discussion. Any member who has an interest in the consideration of the Member may express his or her opinion on the trade policy and practice of that member.　　Finally, at the end of the deliberations, the WTO secretariat was responsible for summarizing and printing the reports of the members, the secretariat and the trade policy review bodies in three documents. The review of China's trade policy will be divided into two days. The next day's meeting will be held on June 2, when WTO members would discuss with the Chinese delegation their concerns on trade and investment with China.