ChinaMeasures Related to the Exportation of Rare Earths, Tungsten, and Molybdenum

In a proceeding brought against the People’s Republic of China by the United States (in which Japan and the European Union joined), the Appellate Body of the World Trade Organization (WTO) ruled that China violated its obligations under the General Agreement on Tariffs and Trade 1994 (GATT)1 by imposing export restrictions on “rare earths,” minerals used in mobile phones, hybrid cars, and other high-tech products. In upholding the earlier decision of a WTO dispute settlement panel, the Appellate Body rejected China’s argument that export duties, quotas, and other restrictions could be justified by health and environmental concerns.