AFP reported that the European Union and the United States are preparing to launch joint WTO action against China over Chinese restrictions on exporting raw materials.
A EU source said on condition of anonymity that "The European Union is currently getting something ready with the United States."
The source said that the move concerned about 20 raw materials that resource hungry China was restricting its companies from exporting in breach of its commitments when it joined the WTO in 2001. The materials include tungsten, copper, bauxite, antimony, yellow phosphorous, magnesium carbonate, molybdenum, rare earths and indium.
Last week, US Trade Representative Mr Ron Kirk said that Washington wanted to move more aggressively to resolve trade frictions with China, warning that it would not hesitate to drag the Asian giant to the WTO.
While the EU and China are major trade partners, tensions have also been on the rise, especially with Europe opening a growing number of anti dumping cases against Chinese industries ranging from candle makers to screws and bolts.