AP reported that Obama administration has filed its first trade case against China with the World Trade Organization, accusing the Asian power of restricting exports of certain raw materials to give Chinese manufacturers unfair advantages.

Mr Ron Kirk trade representative said that the US is deeply troubled at what appears to be a conscious policy to create unfair advantages for Chinese industries by restricting exports of raw ingredients used in steel, aluminum and chemicals.

Mr Kirk added that dialogue was the preferred method to settle the dispute, but that China has not changed its policies despite the US raising the issue repeatedly.

The European Union also requested formal WTO action with China on the issue.