The U.S., Japan and the European Union this morning, urging the body to take actions against China鈥檚 restrictions on these metals.
鈥淐hina鈥檚 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 鈥榞reen鈥� business applications鈥� said EU Trade Commissioner Karel De Gucht .
鈥淒espite 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鈥檚 export regime again to ensure fair access for our businesses to these materials,鈥� Gucht added.
This is the second time that the EU challenges China鈥檚 export restrictions on raw materials, but the case in which the U.S. and Japan join the plea. In , forcing China to lift the ban on exports. However, rare earth elements were not part of the ruling.
China has been throwing restrictions on some exports claiming the country faces critical shortages of raw inputs needed for its manufacturing industry, especially the tech sector.
The action is part of Obama鈥檚 administration efforts to reduce what it sees as unfair trading practices by China. Senior administration officials quoted by Reuters, said Beijing鈥檚 export restrictions give Chinese companies a competitive advantage by providing them access to more of these rare materials at a cheaper price, while forcing US companies to manage with a smaller, more costly supply.
No 鈥楽kirting the Rules鈥�
Later this morning, President Barack Obama warned China that it would not be allowed to gain a competitive advantage in world trade by 鈥渟kirting the rules,鈥� .
鈥淚f China would simply let the market work on its own, we鈥檇 have no objection,鈥� Obama said. 鈥淏ut their policies currently are preventing that from happening. And they go against the very rules that China agreed to follow.鈥�
United Steelworkers (USW) International President Leo W. Gerard said President Obama and Ambassador Kirk were to be applauded 鈥渇or calling China on the carpet.鈥�
鈥淐hinese export restraints have a devastating impact on production and jobs here in the United States by limiting or raising the cost of these materials to our companies,鈥� .
He added that there has already been 鈥渟ignificant damage globally to downstream users of these key raw materials from China鈥檚 comprehensive and illegal scheme to restrict access to various raw materials.鈥�
China鈥檚 reaction
it will properly deal with a dispute settlement request on rare earth made by three major economies in accordance with WTO rules.
鈥淧reviously, China has been in constant communication and contact with related countries about its export policy on raw material products, and has emphasized repeatedly that the policy aims to protect resources and the environment, and realize sustainable development,鈥� the statement said.
China has no intention of protecting domestic industries by distorting its foreign trade, the MOC added.