China attacked for subsidies and protectionism

CHINA has hit back at growing allegations of protectionism and illegal trade subsidies in regards to its metal products. The European Union and the US have asked the WTO to discuss China’s export restrictions on key raw materials such as bauxite and fluorspar, which are used to make aluminium. According to the complaint, the Chinese export quotas and tariffs make these materials cheaper for domestic producers and more expensive for everyone else. Additionally, the Chinese government has raise tax rebates on some exports of aluminium to help boost exports. This has led to Australian aluminium parts makers complaining of unfair subsidies and dumping. Australian Customs has launched yet another anti-dumping and countervailing investigation into Chinese imports of aluminium parts. There is also contention regarding China’s ‘buy Chinese’ approach to its government stimulus package. Steel makers also say China’s export subsidies will unfairly benefit Chinese mills, and undermine the global steel industry. source:www.metalworker.com.au