The Legal Analysis Of The USA, EU,Japan Sue China Rare Earth Case In The Context Of WTO Rules

On March the13th,2012, the United States of America, the European Union and Japan submit to the WTO in request of negotiation with China on the issue of export control of the rare earth, based on the assertion that China conducted unfair export control on rare earth, tungsten and molybdenum, including export duties, export quota, price requirements as well as other limitation on export procedures, therefore violating WTO rules and promises of China to enter WTO.China put in demurrer by invoking the General Exceptions of the article20of GATT1994. There was divergence among the advisory experts and the dissenting opinion was recorded into the experts report, which means that the stand of China was acknowledged by the experts to some extend. Although the final appellate penal upheld the judgment that the export duties and export quota conducted by China on the commodities at issue were not in conform with China’s promise to enter the WTO, this case opened up a new situation for the negotiation of China in WTO trading disputes and found a breakthrough point for future cases of the same kind.The thesis consists of five sections. Section one is a summery of the resources of rare earth around the world, which mainly focuses on the general concept of rare earth, resource distribution of rare earth around the world, and laws and regulations concerning rare earth of major countries including USA and Japan.Section two is an analysis of the rare earth resource development and trading laws and regulations, which mainly introduces the current situation of rare earth resource, the development of rare earth and relevant laws and regulations in China. Section one and section two altogether serve as background information of the case of the USA, EU, Japan v. China on rare earth. The richness of rare earth resource in China and the change of rare earth trading policy by the Chinese government affected the interests of some western countries, in light of which the China rare earth case is, in nature, a battle over the natural resources of the earth.Section three is the legal analysis of the rare earth case, which first of all introduces that the global trading of natural resources leads to intensified friction of world wide trade, in which the rare earth case is but a skirmish of western countries. Secondly, section three makes detailed analysis of DSU Rule based on the overall progress of the rare earth case. Last but not least, the author makes analysis of some WTO rules based on the major issues of the case.Part four is an introspection of the losing of the rare earth case, which mainly analyzes the applicability of relevant articles of GAPP1994in the litigation and the adoption of the articles. Meanwhile, the author makes an specific analysis on the judgment of the experts.Part five is the enlightenment of the rare earth case. This section serves to argue that the very reason why China lost this case lies in the inconformity of the domestic law with WTO rules, such as the Foreign Trade Law of PRC, which requires us to make better use of GATT1994rules with timely adjustment of domestic laws and regulations on international trade.