Sina Finance recently reported that the World Trade Organization (WTO) ruled on the complaints that Japan, the United States, and the European Union filed against China’s rare earth export restrictions. The WTO concluded that these restrictions are not compliant with the WTO’s regulations. This initial ruling is not considered final. China can still appeal. China implemented the restrictions after an incident with Japan in the East China Sea in 2010. It was widely considered to be a way of punishing Japan. Japan later jointly filed the WTO complaints with the United States and the European Union. Rare earth is used as basic material in the high-tech industry and the defense industry globally. China argued that China is authorized, in accordance with WTO rules, to apply restrictions on the export of strategic resources and high-pollution products. However, China did not restrict domestic rare earth development expansion which increased the level of pollution.
Source: Sina Finance, October 30, 2013
http://finance.sina.com.cn/chanjing/cyxw/20131030/133917165289.shtml