The European Union (EU) yesterday/on Wednesday requested that the World Trade Organization (WTO) establish a dispute settlement panel over China’s export restrictions on rare earth minerals. This is the second step taken to WTO following the initial consultation’s failure.

Photo: Reuters

In an announcement released the same day, EU trade commissioner Karel De Gucht said China’s restrictions on rare earth and other products seriously violated its WTO commitments while significantly distorting the global market and causing disadvantages for European companies.

In an official consultation with China at WTO, the EU, the US, and Japan condemned Beijing’s strategy on increasing the price of such rare products in the global market. Meanwhile, China affirmed that it strictly complies with the international trade regulations, adding that its restrictions are necessary to preserve precious natural resources, protect the environment against overloaded exploitation, and meet domestic demand.