WTO requires China to cancel export restrictions on rare earths

World Trade Organization (WTO) yesterday asked China to abolish export restrictions on rare earths , which is a major victory for the United States , the European Union (EU) and Japan achieved . Rare is the smart phones, cameras , steel and hybrid vehicles in production of key raw materials .

WTO said Beijing over the years to use trade policy to control a key strategic commodities markets , and to encourage manufacturers to move their factories to China .

The ruling by the United States , Japan and European trade officials welcomed the latter complained that the export restrictions to allow Chinese companies an unfair advantage.

? EU Trade Commissioner Carlo De Gucht (Karel de Gucht) , said : "WTO ruling today on rare shows that no country can hoard of rare earth from global markets, and to allow other WTO members to pay . "China's rare earth production accounted for 90 % of global output . Means 17 kinds of rare earth metal elements , including lanthanum , tungsten, and molybdenum , including neodymium .

Beijing has initially introduced in 2009 rare earth export restrictions in 2011 led to global rare earth prices soared . Due to fears of a global supply shortage , some rare earth prices rose as high as 500%.

In order to break Beijing's control , people have to invest in rare earth mine in the U.S. and Australia . Last year , Japanese scientists claimed to have discovered huge reserves of rare earth in the Pacific Ocean .

But the more direct contest launched at the WTO - Japan, the United States and the European Union filed a complaint in 2012. China argues that these limits are designed to protect resources and the environment. WTO did not recognize this claim .

U.S. Trade Representative Mike ? Floman (Mike Froman) to reporters that the U.S. manufacturer to pay the same price of rare earth three times higher than Chinese competitors . He added: " China 's move makes it impossible to have unrestricted access to key raw materials , which is not fair. The ruling will mean that U.S. manufacturing firms and workers to compete fairly . "

However , rare cases unlikely to end with yesterday's ruling . Beijing aspects can be appealed within 60 days. Chinese Ministry of Commerce , said the WTO decision " regrettable ," adding that the report is evaluating the ruling .

China said its " management " measures " in line with the WTO advocates sustainable development goals , and promoting resources, environment and harmonious development of mankind ."

However , the ruling has broader implications . WTO panel said it has sought to coordinate the countries over natural resources "permanent sovereignty" of the United Nations principles and global trade rules . The panel concluded that once the mining and natural resources are put on the market , they should apply WTO rules . This may make it more difficult in other countries introduced or maintained such restrictions .

But the ruling also between the U.S. and China with a bigger wrestling related , its focus is on Beijing's industrial policy and how to use such policies to benefit from globalization.

China using cheap labor , requiring foreign companies to local production , as well as key raw materials trade restrictions designed to develop the country's manufacturing base . As a result of China's rapid development as a key link in the supply chain , while critics of globalization claim that the United States and Europe, the manufacturing sector has been hollowed out .

The latest ruling before publishing the report , WTO has ruled that in 2012 , Chinese exports to the nine kinds of the more common commodities ( including bauxite and zinc ) limits violated trade rules . The award is considered the foundation rare case , especially since China has since complied with the 2012 ruling.

Yesterday 's ruling in October last year have been reported , but did not disclose the full text. Chinese Society of Rare Earths (Chinese Society of Rare Earths) , an official said dismay when they hear the verdict. She said: " I ​​think the Chinese will certainly appeal WTO ruling because it is unfair . " The Rare Earth Society to help the government formulate policy .

But this ruling may favor Obama (Obama) government , which is facing trouble in the fight for congressional support on the issue of the United States and the European Union and 11 Pacific nations sign trade agreements. More WTO cases ( and won ) may help some members of Congress to support Obama.


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