The WTO last month upheld complaints by the United States, European Union and Mexico, ruling that China had failed to abide by accession commitments when it imposed quotas and duties on several types of minerals including bauxite, coking coal, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc. The complainants charged that export quotas and duties imposed by Beijing on the raw materials were illegal.

"China will appeal," commerce ministry spokesman Shen Danyang told journalists at a briefing Tuesday. "We maintain that our policies do not violate WTO rules."

China, the world's largest producer of rare earths, has also cited environmental concerns and domestic demand for tightening restrictions.

Both the United States and the European Union welcomed the ruling, with EU Trade Commissioner Karel De Gucht saying China should ensure "free and fair access to rare earth supplies".

China has said its measures are in line with the objective of sustainable development promoted by the WTO and incentivise the healthy development of the resource industry.

The state-run Economic Information Daily said the United States and Europe were seeking access to China's resources to "satisfy the needs of their domestic industries, especially the development needs of high-tech industries."   The newspaper--owned by the official Xinhua news agency--said China should be "on guard" as some countries pursue their own interests and "make better use of WTO rules to fight for its own lawful rights and interests".

Related Links: 

Chinese Rare Earth Investors Seeking Overseas Oppotunities on Mining Limits (August 19, 11)

Rare Earth Prices Will Soar as China Easing Disappoints US, EU (July 18,11)

China Commerce Minister: Not Worried About any WTO Rare Earths Case (July 15)

China Rare Earth Association: Rare Earth Exports Not to be Impacted by WTO Ruling (July 07, 11)

WTO: China Raw Material Export Restrictions Illegal (July 06, 11)