i am doing an economics commentary atm and found this article about about china limiting exports, here is the extract.
Unsurprisingly, tempers are fraying as governments struggle to find ways to protect their own. The latest salvo was fired on June 23rd by America and the European Union, which complained to the World Trade Organisation (WTO) about China’s restrictions on the exports of nine minerals, including bauxite, coke, magnesium and manganese. These are important raw materials for the steel industry, among others, and China restricts their exports on the grounds that they are exhaustible resources. But America and the EU argue that by hindering their export, China is unfairly favouring domestic industries.
can someone please tell me how this is a form of protectionism, thank u.
Allowing their export would increase demand and therefore increase their price, raising costs to domestic industry.
Currently Chinese domestic industry benefits from cheap Chinese raw materials that the west cannot get its hands on, enabling Chinese producers to produce at a lower cost.
