China Loses Appeal Against WTO Ruling on Raw Material Export Restrictions

China has lost an appeal against a World Trade Organization (WTO) ruling that China's practice of restricting exports of certain key raw materials violates international trade regulations. However, the WTO decision does not cover China's dominant position in the global supply of rare earths. WTO ruled in July 2011 that China unfairly limits exports of nine raw materials including fluorspar, silicon metal, silicon carbide, and yellow phosphorus--some of which cannot be sourced outside China--to protect domestic manufacturers. A WTO panel backed a case brought...

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