GENEVA -- The World Trade Organization Appellate Body this week issued a ruling upholding an earlier recommendation that China bring its raw material export duty and quota measures into conformity with its WTO obligations. The decision could impact China’s self-imposed restrictions on exports of certain rare earth minerals.

The dispute concerns quotas imposed by China affecting the exportation of certain forms of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorous, and zinc. The US, Mexico, and the European Union challenged the restraints, alleging that they were inconsistent with China's commitments under various trade agreements.

In a statement, the US Trade Representative asserted the WTO Appellate Body rejected “China’s attempts to portray its export restraints as conservation or environmental protection measures or measures taken to manage critical shortages of supply.”  The co-complainants will now request that the WTO adopt the decision.
 
The ruling is significant for electronics manufacturers because it could open the door to a similar complaint over Chinese export quotas on rare earth minerals, according to several analysts.