BRUSSELS, June 23 (Reuters) - The European Union will take action with the United States at the World Trade Organisation over Chinese export restrictions on around 10 industrial raw materials, the European Commission said on Tuesday.
Brussels -- which oversees trade for the 27-nation bloc -- said it would formally seek consultations with Beijing at the global trade watchdog. If these talks fail, the next step would be to request a WTO panel to hear the complaint.
"The Chinese restrictions on raw materials distort competition and increase global prices, making things even more difficult for our companies in this economic downturn," EU Trade Commissioner Catherine Ashton said in a statement.
"I hope that we can find an amicable solution to this issue through the consultation process," she said. The EU and the United States say China has continued to restrict exports of raw materials used in steel, microchips, planes and other products despite Beijing's pledge to eliminate export taxes and charges when it joined the WTO in 2001. The materials expected to be covered by the case include yellow phosphorous, bauxite, coke, fluorspar, magnesium rare earths, silicon and zinc. (Reporting by Darren Ennis; Editing by Dale Hudson)