Legal Thoughts Of China Rare Earth Export Restrictions Case

From the beginning of this century, China’s rare earth export restriction policy has been promulgated by the relevant trading countries accuse China of the pressure of public opinion, contrary to the relevant commitments on import and export tariff policy and the WTO agreement. In fact, since China began to export, developed countries have gone through imports from China rare earth benefit for countless, China lacks international trade policy advantage and international trade in goods pricing, and never get the export of rare earth is proportional to the interest, but caused China’s rare earth reserves fell sharply, rampant smuggling, industry vicious prices, the mining area ecological environment pollution and a series of extreme consequences. In this regard, China adopted measures to restrict the export of rare earth is to protect the legitimate interests of the move is purely inevitable. This move aroused strong dissatisfaction with the relevant countries.In March 13,2012, the United States, the European Union and Japan on rare earth, tungsten and molybdenum ore related products of China’s export restrictions formally to the WTO dispute settlement mechanism (DSB) is proposed for consultations with China’s request, in the negotiations fail circumstances, on June 30,2012 formally to the DSB request. In July 23rd, the WTO meeting in Geneva headquarters decided to accept the request of the United States and Japan, the establishment of the expert group, began an investigation, evaluation and award of China’s rare earth export restriction policy. In October 25,2013, WTO announced a preliminary ruling, ruled in favor of the United States and Japan claims that China’s rare earth export restrictions violate WTO commitments. In August 7,2014, WTO announced China’s rare earth export restrictions in the appeal case ruling, the expert group review results is rejected China’s appeal, maintain the preliminary results, which support in the United States and Japan’s request, China canceled restrictions on rare earth minerals and related products exports, the lawsuit ended in China lost.This paper is composed of five parts, the first part mainly introduces the rare case of our basic facts and rulings, and losing influence on China, the second part mainly elaborated our country in this litigation quoted the specific content of GATT twentieth and quoted the rationality, as well as from the treaty interpretation of the relationship between the treaty system, the purpose of WTO and put forward the focus of controversy of the case put forward defense, the third part describes the case of the expert group that our country can not invoke GATT twentieth to excuse and different views on the controversial focus of the case. The fourth part is the expert group and the Appellate Body of the ruling analysis, the main analysis of the unreasonable in the case of the award, The fifth part is some suggestions on China in the rare case after, China should avoid international trade conflicts, pay attention to the rules of WTO, the restrictions of domestic production and consumption to maintain consistent, perfect domestic new trade policy, timely correction of international treaty and conflict, to avoid similar cases again. Finally, the use of circular economy emerging industry control, resource waste and environmental pollution in rare earth production, the circular economy legislation and policy combination, to ensure that trade policy effectively protecting the resources and environment.