Chinese media attack WTO ruling against China
(BEIJING) - Chinese media on Wednesday lashed out at a ruling by the World Trade Organisation that said Beijing's export restrictions on raw materials are illegal, and warned rare earths would be the next target.
The WTO on Tuesday upheld complaints by the United States, European Union and Mexico, ruling that China had failed to abide by accession commitments when it imposed quotas and duties on several types of minerals.
These include bauxite, coking coal, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc.
The Economic Information Daily accused the European Union and United States of wanting access to "China's low-cost resources to satisfy the needs of their domestic industries, especially the development needs of high-tech industries."
The newspaper -- owned by the official Xinhua news agency -- said China should be "on guard" as some countries pursue their own interests and "make better use of WTO rules to fight for its own lawful rights and interests".
A report carried on the Caixin business website Wednesday also warned China's export controls over rare earths were "very likely" to become the next target of WTO complaints.
China on Tuesday expressed regret at the WTO ruling and said its measures are in line with the objective of sustainable development promoted by the WTO and they help to induce the resource industry towards healthy development.
The complainants had argued that the metals are all key inputs for numerous products in the steel, aluminium and chemical sectors and as China is a leading producer for these materials, any restrictions could lead to sharp spikes in world prices.
Tuesday's ruling comes amid an international uproar over China's moves to tighten its grip over rare earths -- 17 elements critical to making many high-tech products -- including slashing exports and imposing higher taxes.
China, the world's largest producer of rare earths, has cited environmental concerns and domestic demand for tightening restrictions, leading to skyrocketing prices.
EU Trade Commissioner Karel De Gucht said that in light of the WTO ruling China should ensure "free and fair access to rare earth supplies".