WTO against China's restrictions on exports of rare earths

The WTO ruled against China in the rare earth case . United States and Japan on China's rare earth export restrictions to get WTO litigation support. WTO that China's restrictive policies with the organization 's free trade rules do not match. But a trade war did not end - China will appeal.

The history of the WTO , which is the first time in three big geopolitical players union sued and won the case of rare earth monopoly . China controls 95% of the rare earth market . Largest importer partners - the United States and Europe Day in court successfully proved that Chinese export restrictions purpose is to let the market shortage . And this will lead to higher prices. But Russia's Higher School of Economics, World Economy Department Director Leonid Grigoryev that temporarily in the lawsuit are not yet a winner.

He said: "The lawsuit will be crushed . China is likely to appeal. Will undoubtedly appeal to protract the case , it will be a very long process. Very difficult to resolve conflicts in the WTO . May also be lost. Even if China lost again , there will be a large number of barbed wire to prevent it from going to implement decisions . Most do not understand : what will come to the conclusion , because China is a national economy. If for some reason it decided not to produce anything, restrictions , then do not quite understand how to force China to produce it due to some reason do not want to produce. "

At the same time , the pressure on Beijing is indeed great, but obviously a force. China rare earth exports are strong political and economic leverage . Competitors attempt to deprive it of this leverage. Meanwhile American independent experts acknowledge that if the United States is a rare earth metal market monopoly , would certainly like the Chinese do .

Russian Academy of Sciences Institute of World Economy and International Relations expert Alexander Sally Nowitzki insisted that the rare earth market has become a brutal geopolitical battleground .

He said: "This is too hard for the performance , too successful containment of China conscious . China into the global trading nation in the forefront , and it is relatively considerable financial situation so that the West is extremely fear. Competitors confessed : We totally do not need your success , you want to play a major role , we are very unhappy. "

The problem here is not the WTO , nor is it rare , but China on the same day the United States and Europe is extremely complicated relationship. Far East Institute, Russian Academy of Sciences expert Yakov Do Er Geer believes that in essence are many chess board at the same time take the multi-step move.

He said: " In order to force China to compromise on the earth , it shall issue other economic or political gain some bonus . For example, China is now in the South China Sea and East China Sea territorial disputes encountered very complex . For example, China is extremely important that their main geopolitical rival the U.S. and Japan do not involve themselves in disputes with its neighbors . And for these countries is very important to be able to play in the WTO to force China to expand rare earth export quotas ace . "

Last year, China has carried out a compromise , the rare earth export quota has doubled . China has also set up rare earth metals exchange , which is also on the West and Japan urged China not to press countries export prices according to the market price of rare earth metals to make a positive response . Temporarily WTO arbitration court ignored these arguments against China . But this does not mean that Beijing will withdraw their arguments . Chinese people are very likely to appeal.


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