The European Union demanded that China loosen its sales of rare earth materials after the World Trade Organisation upheld a ruling that Beijing’s policies to limit raw material exports violated international trade rules.
The WTO’s appellate body issued its decision yesterday, endorsing a previous finding that export duties, quotas and other policies enacted by Beijing to limit the foreign sale of nine raw materials were not justified on environmental grounds.
The case was filed in 2009 by the EU, US and Mexico, which argued that the higher prices their manufacturers were forced to pay for goods such as bauxite, coke and zinc put them at a disadvantage across a wide swath of industries – from steel to batteries, chemicals and ceramics.
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