The European Union and the US are preparing to take China to the World Trade Organisation over allegations that Beijing grants raw materials to domestic manufacturers at below-market prices, according to people familiar with the matter.
The European Commission was expected to present its findings to member states at a meeting on Friday, these people said, and would consult with China later this month. If the parties could not resolve the dispute, then the EU and US would press ahead with a WTO complaint.
The dispute is another indication of the rising trade tensions between the parties as the economic crisis grinds on. In recent months, the EU has filed anti-dumping complaints against China over products ranging from footwear to steel fasteners.