BY JOHN W. MILLER AND JAMES T. AREDDY
BRUSSELS—The World Trade Organization on Friday will issue a preliminary report concluding that China has no legal right to impose export restrictions on nine raw materials, say trade diplomats and lawyers familiar with the case.
The quotas, license requirements and other measures on industrial ingredients such as zinc and coke, many vital for making steel, have been a key irritant in China's simmering trade tensions with trading partners.
"This [case] is a punch against China's trade policy," says Simon Evenett, an economist at the University of St. Gallen in Switzerland. "It means you can't use protectionism as a policy tool ...
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