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European Commission Takes Legal Action Against Export Restrictions on Chinese Raw Materials

On 19 July 2016, the European Union launched a third case against China’s export restrictions on export of the following critical raw materials: graphite, cobalt, chromium, magnesia, antimony and indium. According to EU Trade Commissioner Cecilia Malmström: “we cannot sit on our hands seeing our producers and consumers being hit by unfair trading practices. The past two WTO rulings on Chinese export restrictions have been crystal clear – these measures are against international trade rules. As we do not see China advancing to remove them all, we must take legal action”. The next step is for formal consultations between the EU and China to be conducted. In absence of a satisfactory solution within 60 days, the EU may request the WTO to set up a panel to rule on the compatibility of China’s measures with WTO rules.

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