[WTO Case Review Series No.16] China—Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum (DS431, DS432, DS433): Development of interpretation related to disciplines on export restraints

Rapid economic development in emerging economies including China has been transforming the structure of the world economy. One such phenomenon is an international struggle for resources, in which resource-endowed countries tend to resort to export restraints of resources as one of their tools. Following the Panel and the Appellate Body in China--Measures Related to the Exportation of Various Raw Materials which established, for the first time since the formation of the World Trade Organization (WTO), the interpretation of major legal disciplines on export restraints, the Panel and the Appellate Body of China--Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum have further clarified their interpretation. After introducing the factual background and the findings of the reports, this policy discussion paper examines the practical significance of this case where Japan for the first time made a WTO dispute settlement complaint against China and for the first time gained a victory, and analyzes how the legal disciplines on export restraints have been developed compared with the precedents.