China’s financial news rules spur WTO case

The United States and European Union filed a World Trade Organization case against China on Monday demanding that it loosen restraints on foreign companies vying for a greater slice of the country’s lucrative market for financial information.

The U.S. and the 27-nation EU said they were challenging rules announced in 2006 that undermine the ability of Reuters Group, Dow Jones & Co. and Bloomberg to sell financial information to banks, government agencies and other customers in China.

“China’s restrictive treatment of outside suppliers of financial information services places U.S. and other foreign suppliers at a serious competitive disadvantage,” U.S. Trade Representative Susan Schwab said. “We have raised this matter with China repeatedly, yet the problem has not been resolved.”

The requests trigger a 60-day consultation period. If the talks fail, the U.S. and EU can ask the WTO to launch a formal investigation.

The announcements come amid mounting tensions with China over its swelling trade surplus.

There was no immediate response from China’s foreign and commerce ministries.

“Competitive and open financial services information markets are the lifeblood of a strong financial sector, but China’s rules have tipped the balance against foreign companies,” EU Trade Commissioner Peter Mandelson said.