China Lodges WTO Appeal after Defeat in Rare Earths Export Duty Case

China has asked the WTO’s highest court to review a series of substantive findings in a dispute panel ruling that found Beijing’s restrictions on rare earths exports to be in violation of international trade rules. The move, confirmed last week, marks the latest chapter of a case that has highlighted the nuances of balancing natural resource management policies with global trade commitments.

Last month, a dispute panel had found that China’s use of export duties and quotas on various rare earth elements, along with tungsten and molybdenum, went against both international trade rules and its WTO accession commitments.

These rare earths are used in the manufacturing of various high-tech and green energy products, such as wind turbines and engines for electric and hybrid vehicles. China is responsible for nearly all rare earths production – 90 percent, according to the US Geological Survey – and is the home of a quarter of the world’s supply.

A few weeks ago, the US had filed a conditional appeal of its own, in advance of a potential appeal from China. Unlike Beijing’s filing, Washington has focused primarily on a series of procedural concerns with the dispute panel’s review of evidence, rather than on questions regarding the substance of the ruling.