U.S. brings trade case against China over export restrictions

PanARMENIAN.Net - The Obama administration is bringing a new trade case against China that seeks to pressure the rising economic power to end its export restrictions on key materials used to manufacture hybrid car batteries, flat-screen televisions and other high-tech goods, AP reported.

The new trade initiative being announced Tuesday, March 13 is another effort aimed at leveling the playing field for U.S. companies.

Senior Obama administration officials say the U.S. will ask the World Trade Organization to facilitate talks with China over its curtailment of exports of rare earth minerals. The U.S. is bringing the case to the WTO along with the European Union and Japan, the officials said.

The fresh action is part of President Barack Obama's broader effort to crack down on what his administration sees as unfair trading practices by China that have put American companies at a competitive disadvantage. Obama was to announce the WTO action from White House on Tuesday, according to the officials, who requested anonymity in order to speak ahead of the president.

China has a stranglehold on the global supply of 17 rare earth minerals that are essential for making high-tech goods, including hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapor lights, smartphones and camera lenses. The materials also are used in the manufacture of tiny motors, such as those used to raise and lower car windows and in consumer electronics.

China has reduced its export quotas of these rare earth minerals over the past several years to cope with growing demand at home, though Chinese officials also cite environmental concerns as the reason for the restrictions. U.S. industry officials suggest it is an unfair trade practice, against rules established by the WTO, a group that includes China as a member.