The European Union, together with the US and Japan, launched a second challenge of China's export restrictions on raw materials including 17 rare earths. China imposes a set of export restrictions, including export quotas, export duties and additional requirements on raw materials that the EU considers are in violation of general WTO rules.

The EU, together with the US and Japan, formally requested dispute settlement consultations with China in the World Trade Organisation (WTO) regarding China's export restrictions on raw materials. Raw materials covered by this case are various forms of rare earth elements (REE), plus molybdenum and tungsten. This follows a successful EU challenge at the WTO on similar restrictions for other raw materials earlier this year. The EU hopes that these WTO consultations will lead to a satisfactory solution with China.

According to the European Commission, China imposes a set of export restrictions, including export quotas, export duties and additional requirements that limit access to these products for companies outside China. These measures significantly distort the market and favour Chinese industry at the expense of companies and consumers in the EU. This is specially important bearing in mind that the EU trade with China continues growing, especially exports.

The EU supports and encourages all countries to promote an environmentally friendly and sustainable production of raw materials. However, the EU believes that export restrictions do not contribute to this aim; there are more effective environmental protection measures that do not discriminate against foreign industries.