Hongpo Shen reports that as a result of the WTO Appellate Body issuing its report on August 7th, 2014, while it has upheld a ruling that China violated international trade rules with restrictions on the export of rare earths, China Ministry of Commerce - MOFCOM - responded to this ruling with a statement saying that it regretted the WTO reaffirmation of its earlier ruling, according to the Xinhua News Agency. The MOFCOM also reportedly vowed to study the decision and adopt measures which are in accordance with the WTO rules in the future. Despite the MOFCOM has not yet announced its counter-measures, however, I think that it is difficult to avoid the removal of export quotas and tariffs on rare earth since next year.\n\nFor a WTO rare-earth lawsuit case, the state has adopted a series of policies and measures to better coordinate rare earth development. Gan Yong, deputy director of the Chinese Academy of Engineering and head of the Association of China Rare Earth Industry - ACREI, said at the Baotou China Rare Earth Industry Forum that to remove rare-earth export quotas as an industrial management mechanism, it would be more difficult for the Chinese government to regulate the industry. Therefore, the government needs to formulate new countermeasures to ensure the rare-earth operation in accordance with the law and regulations.\n\nThe Chinese authorities will carry out a series of new measures in the next few months, including to further increase resource taxes on rare earth sales again in order to prevent rare earths from being exported at unreasonably lower prices as well as efforts to stabilize the rare earth market, according to a report in the state-run China Securities Journal.
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