July 7 -- China is currently evaluating the report by the World Trade Organization's (WTO) expert panel which recently ruled against curbs introduced by China on the exports of industrial raw materials, and will respond accordingly via the WTO dispute settlement mechanism, reports Oriental Morning Post, citing the Ministry of Commerce.
The ministry expressed regret at the ruling by the expert panel which found China to have violated international trading rules and its obligations as a WTO member by restricting exports of nine types of industrial raw materials through the use of quotas and export duties.

The nine raw materials include coking coal, bauxite, zinc, magnesium, silicon carbide, fluorspar, manganese and yellow phosphorus used in in the steel, aluminum, automotive, chemical and semiconductor industries.

The complaint was filed by the European Union, the U.S. and Mexico in 2009.
According to the expert panel, China could not prove that the export curbs are able to reduce pollution as it did not limit the use of the raw materials by domestic companies.
Under the WTO framework, China has the right to appeal the ruling. Should it either lose in its appeal, or chooses not to appeal, China would have to cancel the export curbs, or risk retaliatory sanctions from the three parties.

The case is important to the European Union whose imports of raw materials accounted for 10 percent of its total imports and production involving the use of these raw materials provided 30 million jobs, according to Reuters.

According to Xinhua News Agency, it is illogical for the European Union to file the suit against Chinese export curbs of coking coal in 2009 when it had imposed anti-dumping duties on Chinese exports of coking coal in March 2008 for a five year period.
The duties had the effect of decreasing Chinese exports of coking coal, which later led to increases in the prices of coking coal.

In addition, the U.S. is currently imposing anti-dumping and anti-subsidy taxes on Chinese exports of silicon metals, magnesium metals and coking coal, according to the report.

Separately, curbs imposed by China on the export of rare earth minerals had led to surging rare earth prices.