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After a long period of filing a lawsuit， ad- judication， and instituting an appeal， a specialist committee of WTO decided to remain the judgment about China’s violation of the international rules by limiting the export of rare earth.
This March， when WTO made the judgment not favorable for China， this country’s government decided to appeal. At that time， China did not expect any positive changes， and what it did is necessary for every WTO member to protect their rights.
The rare earth is called “industrial vitamin” and widely used in the hi-tech devices and high-end manufacturing. There are 17 kinds of metals listed as “rare earth” and the output from China takes 90% of the global supply. However， in China， the exploitation of rare earth in China is in a mess with disorganization and deficiency. They cause serious waste of raw materials and high pollution. The clients in the U.S.， Japan and Europe eye the low cost of rare earth exported from China and makes use of it to boost the development of their high-end manufacturing.
This did not conform to the market logistics. China imports cheap rare earth materials but spends a lot on the importation of high-end devices made of these materials. The imbalance of the trade is not only unfair for China， but also bad for the global trade orders. For China， limiting the exportation of rare earth is a decision with both the concerns of balanced trade and the will to wrong the disorder in the rare earth industry.
The European and American markets only saw their own interest and rights. They are angered at the increasing price of rare earth because of China’s limitation. They sued against China for that cause， but ignored the fact that China’s limitation on exporting rare earth did not cause the short supply of rare earth in the world. There are other exporters in China. And even the output of rare earth in the U.S. could satisfy its own use.
But they still filed a lawsuit against China and won it. For China， the failure is not that terrible since it has taught this country several lessons about how to deal with the similar situation in the future.
Above all， China needs to improve the regulation over the rare earth market and enhance the industrial integration. The chaos in the rare earth industry of China comes from its disunity and disorganization. The judgment of WTO forced the Chinese government to work out a unified rule to push the rare industry in China onto the way featuring big corporations and planned development.
Secondly， it is necessary to improve the industrial chain. The orderly arrangement in exploitation， processing and comprehensive use is helpful to achieve the integrated development of rare earth industry.
The third one is to seriously deal with the smuggling of rare earth to end the price disunity of exported rare earth.
Following the rules of WTO and doing as it requires are what China promised when joining into the WTO. As the world’s largest trader， the “battle” between China and its major trading partners will not be that short and determined by only one battle. Apart from rare earth， there are still disputes about graphite and other raw materials between China and other countries. Answering to the suits actively and protecting its own rights seriously are what China needs to do internationally. Domestically， it needs to improve the market regulation and accelerate the industrial upgrade， which are urgent missions for this country.
This March， when WTO made the judgment not favorable for China， this country’s government decided to appeal. At that time， China did not expect any positive changes， and what it did is necessary for every WTO member to protect their rights.
The rare earth is called “industrial vitamin” and widely used in the hi-tech devices and high-end manufacturing. There are 17 kinds of metals listed as “rare earth” and the output from China takes 90% of the global supply. However， in China， the exploitation of rare earth in China is in a mess with disorganization and deficiency. They cause serious waste of raw materials and high pollution. The clients in the U.S.， Japan and Europe eye the low cost of rare earth exported from China and makes use of it to boost the development of their high-end manufacturing.
This did not conform to the market logistics. China imports cheap rare earth materials but spends a lot on the importation of high-end devices made of these materials. The imbalance of the trade is not only unfair for China， but also bad for the global trade orders. For China， limiting the exportation of rare earth is a decision with both the concerns of balanced trade and the will to wrong the disorder in the rare earth industry.
The European and American markets only saw their own interest and rights. They are angered at the increasing price of rare earth because of China’s limitation. They sued against China for that cause， but ignored the fact that China’s limitation on exporting rare earth did not cause the short supply of rare earth in the world. There are other exporters in China. And even the output of rare earth in the U.S. could satisfy its own use.
But they still filed a lawsuit against China and won it. For China， the failure is not that terrible since it has taught this country several lessons about how to deal with the similar situation in the future.
Above all， China needs to improve the regulation over the rare earth market and enhance the industrial integration. The chaos in the rare earth industry of China comes from its disunity and disorganization. The judgment of WTO forced the Chinese government to work out a unified rule to push the rare industry in China onto the way featuring big corporations and planned development.
Secondly， it is necessary to improve the industrial chain. The orderly arrangement in exploitation， processing and comprehensive use is helpful to achieve the integrated development of rare earth industry.
The third one is to seriously deal with the smuggling of rare earth to end the price disunity of exported rare earth.
Following the rules of WTO and doing as it requires are what China promised when joining into the WTO. As the world’s largest trader， the “battle” between China and its major trading partners will not be that short and determined by only one battle. Apart from rare earth， there are still disputes about graphite and other raw materials between China and other countries. Answering to the suits actively and protecting its own rights seriously are what China needs to do internationally. Domestically， it needs to improve the market regulation and accelerate the industrial upgrade， which are urgent missions for this country.