Jun. 24 – Two complaints were filed with the World Trade Organization (WTO)  regarding China’s export restrictions on raw materials, alleging that it gave an unfair advantage to local companies and violated international trade rules.

The European Union and the United States submitted separate complaints on the same issue. Ironically, trade complaints against China usually dealt with them exporting too much, now the complaint stems from them exporting too little.

China is the biggest producer of the disputed raw materials that include bauxite, coke, magnesium, manganese, silicon metal and zinc. These materials are used in the manufacture of high-value added products like cars, steel, planes and microchips, to name a few.

In response, China’s Ministry of Commerce said in a statement: “The main objective of China’s relevant export policies is to protect the environment and natural resources. China believes the policies in question are in keeping with WTO rules.”

U.S. Trade Representative Ron Kirk told the Wall Street Journal that the restraints on raw materials a “giant thumb on the scale” in favor of China’s chemicals, steel and aluminum industries, among others, which use those materials.

According to the WSJ, EU Trade Commissioner Catherine Ashton said “the Chinese restrictions on raw materials distort competition and increase global prices, making things even more difficult for our companies in this economic downturn.”

China joined the WTO in 2001 after 15 years of diplomatic talks and with the promise of reforming its economy by opening up to global competition.

Recently, China has been charged with rising protectionism with the implementation of the “Buy Chinese” policy for infrastructure projects funded by the stimulus plan when it was only earlier that it criticized the United State’s own policy to buy from American businesses for its stimulus package.

It seems that Beijing is sliding back to old habits in the face of the economic challenges posed by the global downturn. Even the new labor law implemented this year has been overlooked in some cases in favor of keeping businesses running in a slacking export market environment.