NYT: Europe and U.S. Accuse China of Unfair Trade Practices - by Jack Healy

For the complete report from the NYTimes.com click on this link

Europe and U.S. Accuse China of Unfair Trade Practices - by Jack Healy

The United States and European Union accused China of unfair trade practices on Tuesday, saying the Chinese government was restricting exports of raw materials to give manufacturers in that country a competitive advantage. Ron Kirk, the United States trade representative, said China had imposed quotas, export duties and other costs on raw materials used in the production of steel, chemicals and aluminum. In effect, he said, China was putting its thumb on the scale and giving Chinese manufacturers an unfair edge. He said that restrictions on exports of bauxite, zinc, yellow phosphorus and other raw goods make it more expensive for manufacturers to produce finished goods and threatened thousands of jobs in industries already rocked by the global recession.

“Trade has to be fair,” Mr. Kirk said in a news conference in Washington. “If you’re going to do business with the United States, you’re going to have to play by the rules.” The United States and European Union filed complaints with the World Trade Organization, the first step in what could be a yearslong process of trying to resolve grievances against China.