The European Union and the United States have submitted separate complaints to the World Trade Organization (WTO) alleging that China’s export restrictions on raw materials give an unfair advantage to local companies, violating international trade rules.

The complaint includes bauxite, coke, magnesium, manganese, silicon metal and zinc, for which China is one of the biggest producers. The materials are used in the manufacture of many valuable products, such as cars, steel, planes and microchips.

China’s Ministry of Commerce has issued a response stating that: “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 has reportedly stated that the restraints on raw materials are a “giant thumb on the scale” in favor of China’s chemicals, steel and aluminum industries, among others, which use those materials.

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

Although China promised to reform its economy by opening up to global competition when it joined the WTO in 2001, but recently China has been charged with rising protectionism with the implementation of the “Buy Chinese” policy for infrastructure projects funded by the stimulus plan, even though China criticized the United State’s "Buy American" policy.