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. US urges China to drop Internet filter rule

China defends raw material export curbs
China on Wednesday defended its restrictions on the export of some raw materials, which have sparked a US and EU trade action, saying they are in line with World Trade Organization (WTO) rules. The United States and the European Union a day earlier filed a complaint with the WTO after Beijing put curbs on shipments of a number of materials including bauxite, coke and silicon metal. They said the mix of quotas, export duties and minimum export prices were "in clear breach of international trade rules" and "troubling" as some of the materials cannot be found elsewhere. But China said the policy was aimed at protecting the environment and broke no WTO regulations. "The relevant export policies of the Chinese side are mainly intended to protect the environment and natural resources," the commerce ministry said in a statement faxed to AFP. "The Chinese side deems the relevant policies are consistent with WTO rules." It gave no further information. The two Western powers called for WTO dispute settlement consultations with China regarding the restraints. The launch of consultations is only the first step in the litigation process at the WTO, and is intended to explore whether an amicable solution is possible. This can last up to 60 days and if no solution appears the plaintiffs can move to establish a WTO panel for a formal ruling.

US accuses China of 'troubling' export limits
The United States accused China Tuesday of pursuing a "troubling" industrial policy as it launched WTO action with the European Union against the Asian giant for restricting raw materials exports. The two Western powers requested World Trade Organization (WTO) dispute settlement consultations with China regarding Beijing's export restraints on numerous important raw materials. "China's measures appear to be part of a troubling industrial policy aimed at providing substantial competitive advantages for the Chinese industries using these inputs," US Trade Representative Ron Kirk told reporters in Washington. The materials at issue were bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus, and zinc -- key inputs for numerous downstream products in the steel, aluminum, and chemical sectors across the globe. China is top global producer of these materials. "We are going to the WTO today to enforce our rights, so we can provide American manufacturers with a fair competitive environment and put more American workers back on the job," Kirk said. "China is a leading global producer and exporter of the raw materials in question, and access to these materials is critical for US industrial manufacturers." He added that the United States "is very concerned that China appears to be restricting the exports of these materials for the benefit of their domestic industries, despite strong WTO rules designed to discipline export restraints." Photo courtesy of AFP.
by Staff Writers
Washington (AFP) June 24, 2009
The United States ramped up pressure on China Wednesday to drop a new requirement for all computers to carry Internet filtering software, fearing it was a means for censorship.

Commerce Secretary Gary Locke and US Trade Representative Ron Kirk said China may be violating World Trade Organization obligations with its rule that all computers sold in the country from July 1 have the "Green Dam" program.

"China is putting companies in an untenable position by requiring them, with virtually no public notice, to pre-install software that appears to have broad-based censorship implications and network security issues," Locke said.

Locke and Kirk said they sent joint letters to their counterparts at China's Ministry of Industry and Information Technology and the Ministry of Commerce.

Beijing says the Chinese-made Green Dam software will filter out pornography, protecting young people within the world's largest online population.

But trade and rights groups fear that Green Dam is another attempt by China to control access to the Internet.

China has a history of blocking access to sites carrying politically sensitive topics such as the 1989 Tiananmen crackdown on democracy protesters and the banned Falun Gong spiritual movement.

"Protecting children from inappropriate content is a legitimate objective, but this is an inappropriate means and is likely to have a broader scope," Kirk said in a joint statement with Locke.

"Mandating technically flawed Green Dam software and denying manufacturers and consumers freedom to select filtering software is an unnecessary and unjustified means to achieve that objective, and poses a serious barrier to trade," Kirk said.

US embassy officials already met Chinese authorities last week to voice "concern" about the software, without publicly demanding that Beijing drop the rule.

But Chinese state media said Tuesday that Beijing would not back away from the new rule.

Earlier this month, the state-run Liberation Daily newspaper said that China was trying to protect young people among the country's 300 million Internet users.

"The state encourages research into Internet products that help minors surf the web in a healthy manner," it said.

Questions have also been raised about the Internet software's security vulnerabilities.

Researchers at the University of Michigan who examined the software have said it contained serious security vulnerabilities that could allow outside parties to take control of computers running it via remote access.

The row over the Chinese software comes as technology takes an emblematic role in the protests in Iran, where critics of the clerical regime have turned to Twitter, Facebook and other social networking sites to mobilize.

A senior State Department official said that the United States raised concerns with China about the Green Dam software after appeals by US computer makers, which did not want to be seen as assisting Beijing's censorship.

China has often pressured Internet search engines. Last week, state media said China had shut down some of Google's search services for allegedly failing to eliminate pornography from its Chinese sites.

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Australia on Wednesday launched a probe into alleged aluminium dumping by China, risking deepening tensions between the two trade partners after a massive resources deal went sour. The Customs and Border Protection Service said local Australian aluminium company Capral Limited had lodged an application on behalf of the local industry claiming China had dumped and subsidised certain extrusion ... read more

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