Japan Joins USA, EU to Fight Against China Rare Earth Export Quota

Ministry of Economy, Trade and Industry announced on Tuesday Japanese government joins USA and Europe to talk with China on Chinese export regulation on rare earth, tungsten and molybdenum under agreement of World Trade Organization.

USA, European Union and Mexico already won WTO dispute process in January to accuse Chinese export regulation on metals including bauxite, magnesium, manganese, metallic silicon and zinc. METI expects WTO would support Japan, USA and EU on the critical metals including rare earth.

An industry source said Japanese government added rare earth on the table while UE and USA focus on tungsten and molybdenum.

The three countries require 60 days talk with China. The next step is WTO dispute panel’s judge. The parties can appeal to upper committee.

China halved rare earth export quota in 5 years from 61,560 tonnes in 2006 to 30,259 tonnes in 2010. The lower export quota pushed up rare earth market price. The price increased to more than 20 times for cerium oxide and to more than 10 times for dysprosium in a year from July 2010. The quota was 30,184 tonnes in 2011.