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John Letzing, MarketWatch

SAN FRANCISCO (MarketWatch) -- The U.S. and the European Union are expected to announce a World Trade Organization case against China over its export restrictions on raw materials, according to a report Monday.

Reuters reported that U.S. Trade Representative Ron Kirk's office has scheduled a news conference at 9:15 am Eastern time regarding U.S.-China trade, at which industry sources expect the WTO case will be announced.

The action would follow the failure of the U.S. and EU to persuade China to reduce its export tariffs and raise quotas on materials including zinc, tin, tungsten and yellow phosphorous, Reuters reported.

The first step in a WTO action, according to the report, would be for the U.S. and EU to formally request consultations with Beijing. If those talks fail, the next step would be to request that a WTO panel hear the complaint -- a process that can take years, according to Reuters.

Critics have long complained that China artificially benefits Chinese manufacturers by restricting exports of raw materials used in steel, semiconductors and other products.

John Letzing is a MarketWatch reporter based in San Francisco.