US and European WTO sue China for the intention of rare earth
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Agence France-Presse quoted a report released by the World Trade Organization on the 6th that China's raw material export tariffs are considered to be inconsistent with the commitments at the time of accession to the WTO, and the setting of raw material export quotas is not in line with WTO rules. Bloomberg's analysis on the 6th said that the dispute will be traced back to June 2009, when the EU and the United States sent China's raw material export restriction policy to the WTO. As a member of the North American Free Trade Area, Mexico has also joined the ranks of China. The listed raw materials are 9 kinds of alumina, coke, fluorite, magnesium, manganese, ferrosilicon, silicon carbide, yellow phosphorus and zinc, excluding rare earth.
Bloomberg believes that although the case does not involve rare earth products, this time the European and American countries' "study of the stone" is supported by the WTO, it is likely to lock the next target to the rare earth. According to the BBC, EU Trade Commissioner Carlo de Gucht said he would use a WTO ruling to convince China to stop restrictions on rare earth exports. In an interview with Reuters, he also said that since China is likely to appeal the WTO ruling, the EU will postpone the decision whether to further challenge China's export restrictions in the WTO. "I hope to find a solution through negotiation, so that there is no need to go to court." The US "Wall Street Journal" said on the 6th that it will take several years for China to agree to cancel the restrictions. China can appeal this ruling. If China does not cancel export restrictions including export quotas, tariffs, and minimum export prices, the EU, the US and Mexico will also impose retaliatory tariffs on Chinese goods.
Zhou Shizhen, a senior researcher at the China-US Research Center of Tsinghua University, said in an interview with the Global Times on the 6th that China should appeal in the face of the WTO ruling. First of all, the protection of the resource environment is justified. If a country does not have the ability to protect its own resources, this country is a colony. Second, this WTO ruling is clearly inclined to the West. The banner of the World Trade Organization is "prevention of discrimination" and "fair trade". Similarly, isn't the export control of US high-tech products to China not discriminatory, is it fair trade and free trade? There is no voice in the WTO on this issue. Zhou Shizhen said that if this appeal fails, it will lead to the rare earth that the West has told us. The WTO's ruling on Chinese raw materials is almost the same as China's rare earth exports. If the West cites the same reasons for us to export rare earths, the chances of winning will be very large.
Bloomberg quoted James Bacchus, former chairman of the WTO Appeals Acceptance Committee, as saying that it would be difficult for China to defend its own rare earth export restrictions in the WTO, because China is not using domestic producers while restricting rare earth exports. What restrictions are imposed on rare earths. Zhou Shizhen said that the WTO requires that no matter which country, it enjoys fair treatment in the face of resources. Even if it is not completely fair, there should be a limit to the price difference. Since China has set an export quota now, coupled with export tariffs, the price has risen sharply. The WTO is because of this point that China is in violation of regulations. What China should do next is to intensify efforts to protect resources, start from the source, limit mining, add environmentally-friendly environmental taxes, and rationally increase the price of mineral resources, which is equally applicable to domestic enterprises. Zhong Shan, deputy minister of the Ministry of Commerce and deputy of international trade negotiations, said on the 6th that it will realize the simultaneous management of the export of rare earth primary products and domestic production and consumption.