The WTO has upheld a ruling that China violated trade rules with restrictions on the export of “rare earths,” the minerals used in the manufacture of mobile phones, hybrid cars and other high-tech products.
In March, the WTO dispute settlement panel found that China’s restrictions breach WTO rules. Its ruling followed complaints by the US, the EU and Japan.
In its ruling on Thursday, the Geneva-based WTO’s appellate panel rejected Beijing’s appeal, saying it had not demonstrated that the export quotas China applies to various forms of rare earths are justified.
China has about one-third of total global deposits of rare earths but accounts for more than 90 percent of production.
In 2009, it alarmed foreign companies by limiting rare earth exports in an attempt to boost its domestic manufacturing base.
US Trade Representative Michael Froman said that Thursday’s decision “marks the end of the line” for the rare earths dispute.
“By upholding rules on fair access to raw materials, this decision is a win not only for the United Sates, but also for every nation that respects the principles of openness and fairness,” Froman said.
In a statement, China’s Ministry of Commerce expressed regret about the ruling and repeated its arguments that the controls were aimed at protecting the environment and conserving resources.
The ministry promised “proper follow-up work” based on the WTO ruling but gave no details of what it would do.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
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