US to Challenge China at WTO on Raw Material Export Restrictions

A challenge to China's export restrictions on raw materials is being launched by the U.S. at the World Trade Organization (WTO).The U.S. asked the WTO to launch dispute settlement proceedings on allegedly unfair Chinese export restraints, including export duties and quotas.If the U.S. prevails in the case, it could reduce key input costs for various US manufacturers. The U.S. alleges that the restrictions violate the General Agreement on Tariffs and Trade (GATT) and the terms of China's agreement to join the WTO.The total annual export value of the raw materials involved in the case exceeds $1.3 billion, according to the European Union, which is also challenging China's export restrictions.This is the latest in a series of trade frictions between the U.S. and China that could loom large, especially if China responds to the trade cases by pursuing complaints on other products from the U.S.