The Wall Street Journal said yesterday that the World Trade Organization (WTO) trade diplomat revealed that the WTO is preparing to declare China's restrictions on exporting major raw materials illegal, rejecting the Chinese government's claim that it is necessary to limit exports for environmental protection. . This move will set a precedent for the US and EU to complain about China's export quotas for rare earth materials.

The above news was not confirmed by the Ministry of Commerce. However, Zhao Yumin, director of the International Marketing Department of the Ministry of Commerce, told the Southern Reporter that they also noticed the above information. This is a serious matter that needs to be handled with care, but the official has not yet made a formal response. If this ruling is final, the Chinese government will only abide by the WTO decision and relax policies, such as lowering tariffs.

WTO will sentence China's raw material export restrictions to violations
The Wall Street Journal reported that the WTO is preparing to issue a ruling that ruled that China has no right to impose export restrictions on nine raw materials, including zinc and coke. Rejecting what the Chinese government calls a need to limit exports for environmental protection.

The lawsuit dates back to 2009. The United States, the European Union, and Mexico point out that China is the world's largest producer of cadmium, gold, indium, iron ore, lime, lead, manganese, mercury, molybdenum, phosphorus, tin, tungsten, and zinc. While China continues to cut exports of these minerals, they filed lawsuits against the WTO on China's policy of restricting the export of nine of these raw materials and continued to exert pressure.

The US steel industry lobbying group sent a letter to the US Trade Representative Office this year, accusing China of reducing the export quota for bauxite again, from 930,000 tons in 2010 to 830,000 tons in 2011. And pointed out that China's exports of phosphorus have dropped from 102,346 tons in 2005 to 39,465 tons in 2010. Phosphorus can be used to make matches, herbicides and other chemicals.

After the complaints were filed by three trading partners, China cited Article 20 of the WTO. This provision allows 153 members of the WTO to restrict exports for reasons such as environmental protection. According to the Wall Street Journal, the WTO rejected this claim.

Liu Xueqin, director of the China Foreign Trade Research Office of the Ministry of Commerce, said, "She just got the news, but the specific situation did not have time to learn more."

However, under the WTO framework, China can now appeal the ruling on raw materials. If this is not done or the appeal fails, China must cancel the export restrictions or face retaliatory trade sanctions from the three complainants.

In response, EU Trade Commissioner Degut recently delivered a speech at a raw materials forum in Brussels, saying that the raw materials case will greatly enhance the EU's favorable position in filing complaints on rare earth issues. Rare earth mines, which are critical for many industrial applications, have become a particular problem. China accounts for about 30% of the world's rare earth supply, but it accounts for more than 90% of the world's rare earth exports.

Dealing with rulings may reduce tariffs
For the above news, the Ministry of Commerce did not confirm it until the time of publication.

"With regard to this ruling, there is no official official response yet. Many details have not yet been made public. I can only talk about my views." Zhao Yumin, director of the International Marketing Department of the Ministry of Commerce, told the Southern Reporter.

She said that the WTO ruling now has legal effect. If China does not comply, the WTO will cancel some commitments made to China, such as the elimination of tariff barriers. Other member states may use this to conduct some trade retaliation, which will cause damage to some of China's export trade. Of course, in what aspects of China’s trade have been affected, it is necessary to understand the types of raw materials involved in the WTO decision and to analyze it in detail.

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