BEIJING (Reuters) - China plans active negotiations should the European Union take a dispute over export restrictions on industrial raw materials to the World Trade Organisation, the Commerce Ministry said on Monday.
Brussels and Washington will formally request consultations with Beijing on the issue on June 22, after failing to persuade China to reduce export tariffs and increase quotas on a variety of materials, including strategic metals, sources told Reuters last week.
"We have noticed that EU will take action at the WTO. I think that's normal," Commerce Ministry spokesman Yao Jian told reporters at a regular briefing.
"If that happens, we will actively talk with relevant countries and try to reach an agreement."
The EU and U.S. complain that China's restrictions on exports unfairly raise the international price while depressing domestic prices, to the benefit of manufacturers based in China.
The materials expected to be covered by the case include yellow phosphorous, antimony, bauxite, coke, fluorspar, indium, magnesium carbonate, molybdenum, rare earths, silicon, talc, tin, tungsten and zinc.
China regularly tweaks tariffs as well as value-added tax rebates to encourage its own companies to move up the value chain, or to discourage investment in industries it views as over-supplied or as severe polluters.
China's export restrictions were intended to protect the environment, and are in accordance with the public interest, Yao argued.
"As for whether it impacts some countries' imports and production, I think no trade policy is perfect," he said.
"We cannot expect any policy to simultaneously protect the environment and leave prices unchanged."
A WTO consultation could take years and prove costly for both sides in terms of litigation.
(Reporting by Langi Chiang and Lucy Hornby: Editing by Ken Wills)
