WTO ruled that China has initially rare earth export restrictions incompatible with the rules of the organization

Sources said that United States and Europe for the World Trade Organization (WTO) against China 's rare earth export restrictions of trade disputes , WTO ruled that China has initially rare earth export restrictions incompatible with the rules of the organization , which is China's use of export quotas and tariffs on industrial policy as the second tool approach was successfully challenged .

Presented to the countries concerned WTO interim report and listen to China and other countries in the comments on the report , summary of the final report , scheduled to be announced later this year . Generally speaking the contents of the interim report will be basically reflected in the final report. Panel hearing the equivalent of " first instance " China may be responsible for the WTO Appellate Body of Final Appeal. WTO has not yet made a formal decision , also declined to comment.

2010 took place in the waters near the Diaoyu Islands collision incident, as sanctions against Japan , China limits exports of rare earths . After the United States, Japan and the European Union jointly to the WTO about China rare earth export management , tungsten and molybdenum request for consultations , highlighting China's control of rare earths in international trade . Rare earth is widely used in high-tech and military fields.

Chinese Ministry of Commerce, Industry Analyst Mei Xinyu said that China is likely to appeal. China reserves the right to limit strategic resources , or high pollution, high energy exports, such as rare earths.

In the 1990s, China 's WTO accession negotiation, the focus of the negotiations is that the removal of trade barriers , allowing overseas products in the Chinese market competition. Since then China to adjust export tax on different products and export quotas , to encourage or restrict domestic production capacity expansion. These measures have made ​​some products in China, prices are lower than the international market price.

In 2011, the United States , the European Union and Mexico against China on the implementation of various industrial raw materials export quotas appeal WTO, and successful examples for these countries to challenge China's rare earth export policy began.

China believes that the export quota of rare earth mining and processing for the suppression caused environmental damage is necessary. But in limiting exports, while China has encouraged domestic rare earth processing industry expansion, which led to WTO rejected China 's claims.


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