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WASHINGTON – The National Association of Manufacturers expressed strong support for the decision by the US and European Union to initiate dispute settlement procedures in the World Trade Organization regarding China's export restraints.

In a press release, NAM vice president for International Economic Affairs Frank Vargo said, "NAM wants to see a robust, healthy, long-term trade relationship with China. That relationship must include adherence to the global trade rules that China committed to follow."

Vargo said China’s export restriction of nine key raw materials has "distorted trade and caused economic injury" to NAM members. China’s actions, NAM said, have "had the effect of subsidizing Chinese producers by allowing them to pay a lower price for those materials than US companies. In our view, this is a clear violation of commitments China made when joining the WTO."

The US and China have been engaged in discussions on the matter for two years.

NAM supported China’s inclusion in the WTO because it would bind the nation to international trade rules, including provisions for resolving trade disputes. "The decision by the Obama Administration to file this case is in fact a further sign of maturity in the US-China trade relationship," NAM said.

SAN JOSE -- Flextronics is among several Nortel Networks creditors calling for changes to the beleaguered telecom OEM's planned sale of certain wireless assets to Nokia Siemens Networks.

The Nortel-Nokia Siemens deal is worth some $650 million, which Nortel desperately needs to exit bankruptcy. But the creditors could hold up or cancel the deal, pending changes to the auction for the company's CDMA and LTE wireless assets.

Among their chief complaints: The $22.5 million breakup fee owed to Nokia Siemens, should Nortel sell the assets to someone else, and a term that permits Nokia Siemens to see competitors' bids. The creditors claim the rules unfairly handicap other potential bidders.

Nortel said it had one other bid besides the offer from Nokia Siemens. The Nokia Siemens deal is expected to close in July, pending other offers. According to reports, Nortel's creditors want the auction to last at least 15 more days in the hopes of generating additional bids.

Flextronics heads the major US creditors committee. The EMS firm makes a reported 70% of Nortel's equipment.