WASHINGTON – The National Association of Manufacturers expressed strong support for the decision by the US and European Union to initiate dispute settlement procedures in the World Trade Organization regarding China's export restraints.

Vargo said China’s export restriction of nine key raw materials has "distorted trade and caused economic injury" to NAM members. China’s actions, NAM said, have "had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than US companies. In our view, this is a clear violation of commitments China made when joining the WTO."

The US and China have been engaged in discussions on the matter for two years.

NAM supported China’s inclusion in the WTO because it would bind the nation to international trade rules, including provisions for resolving trade disputes. "The decision by the Obama Administration to file this case is in fact a further sign of maturity in the US-China trade relationship," NAM said.