Business

WTO rules China violates ‘rare earth’ trade rules

By John Heilprin
Published March 26, 2014 3:24pm ET
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WTO rules China violates ‘rare earth’ trade rules
In this photo taken on Tuesday, July 6, 2010, workers use machinery to dig at a rare earth mine in Baiyunebo mining district of Baotou in north China's Inner Mongolia Autonomous Region. China's government has tightened controls on rare earths production in a move that might inflame trade tensions with Washington and Europe. Regulations issued this week say mines and smelting companies must meet minimum output levels to continue operating. (AP Photo) CHINA OUT | Uncredited

GENEVA (AP) — The World Trade Organization ruled Wednesday that China has violated international trade rules with its restrictions on the export of 17 “rare earths” and two other minerals that have key industrial and high-tech uses.

Responding to complaints filed by the United States, the European Union and Japan, the WTO dispute settlement panel found that China’s restrictions “breach” its obligations to the world trade body because the country could not properly justify them.

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