China has announced new export controls on coke and non-ferrous metals in defiance of a recent World Trade Organisation ruling that it was breaching global trade rules on raw materials shipments.
The Ministry of Commerce yesterday said new export quota arrangements applied to coke - burned to produce steel - and to non-ferrous metals such as molybdenum, antimony, tungsten and silver. These are widely used to produce hi-tech products, catalysts and military weapons.
The controls come three days after the WTO ruled against Beijing's decision in 2009 to impose export duties and quotas on 20 types of raw materials, including coke, saying it had broken a promise to the body to cut tariffs and trade barriers.
The Ministry of Commerce will have to determine whether to appeal against the WTO ruling but market watchers expect an appeal to be made.
'It is not a surprise,' said Johnson Chan, vice-chairman of the Hong Kong Energy and Minerals United Associations, of China's latest quota arrangement. 'China puts priority on feeding its own needs so that it will meet its objective to be a hi-tech manufacturing hub.'
Chan said China could curb exports by restricting upstream exploration and production of natural resources as well as by imposing export levies and quotas.