China Loses WTO Appeal on Export Restrictions

China has lost an appeal to the World Trade Organization following complaints about its restrictions on raw materials exports. The ruling, however, does not affect Beijing's stranglehold on the supply of rare earths, the crucial metals found in many high-tech products.

A WTO appeals panel said that Beijing violated global trading rules by curbing exports of nine raw materials, including bauxite, coke, magnesium, manganese and zinc.

The panel ruled that the export restrictions inflated prices and gave domestic Chinese firms an unfair competitive advantage. Western producers applauded the WTO's decision.