The World Trade Organisation has judged that China’s export restrictions on rare earth minerals are incompatible with its rules, sources from nations involved in the dispute said, marking the second time that Beijing’s use of export quotas and tariffs as an industrial policy tool has been successfully challenged.
The ruling from the panel has not yet been formally released by the WTO, which declined to comment.
The case, brought by Japan, the US and Europe, came after a rise in tensions between China and Japan in 2010 highlighted China’s control of international trade in rare earths minerals, which have high-tech and military applications. It also applies to tungsten and molybdenum.
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