Europe steps up challenge over China's rare metal restrictions

The European Union today launched a second challenge of China's export restrictions on raw materials including 17 rare earths, as well as tungsten and molybdenum, that are critical in the development of green technology. Together with the US and Japan, the EU formally requested dispute settlement consultations with China in the World Trade Organization (WTO). This follows a successful EU challenge at the WTO on similar restrictions for other raw materials earlier this year. "China's restrictions on rare earths and other products violate international trade rules and must be removed. These measures hurt our producers and consumers in the EU and across the world, including manufacturers of pioneering hi-tech and green business applications" said EU Trade Commissioner Karel De Gucht. "Despite the clear ruling of the WTO in our first dispute on raw materials, China has made no attempt to remove the other export restrictions. This leaves us no choice but to challenge China's export regime again to ensure fair access for our businesses to these materials." China imposes a set of export restrictions, including export quotas, export duties and additional requirements that limit access to these products for companies outside China. These measures significantly distort the market and favour Chinese industry at the expense of companies and consumers in the EU.