MercoPress. South Atlantic News Agency

China appeals WTO report that it restricts exports of nine raw materials

Coke, zinc and magnesium are among the raw materials involved in the dispute

China appealed the World Trade Organization's finding in July that its export controls over raw materials including coke, zinc and magnesium violate global trading rules.

The world's second largest economy asked the WTO expert panel to overturn parts of its ruling, according to a statement on the Commerce Ministry's website that didn't specify what parts should be overturned.

The WTO panel report on July 5 said that restrictions on exports of nine raw materials including coke, zinc and bauxite violate global rules and gives the country's manufacturers an unfair edge.

China has said the restrictions are necessary to conserve natural resources and ease overproduction and emissions of carbon and sulphur gases from furnaces. The U.S., the EU and Mexico have said the curbs discourage the export of materials that are critical for their manufacturers, while keeping them cheaper and readily available in China.

The commodities at issue include magnesium, manganese, silicon carbide, fluorspar, silicon carbide and yellow phosphorus, which are used by the steel, aluminium, automotive and chemicals industries.

China, the world's largest producer of rare earths and gold, is also facing pressure to ease its restrictions on rare earths that weren't mentioned in the earlier case.

The country has limited output of rare earths as it plans to halt production in three major rare earth mines in the eastern Jiangxi province's Ganzhou city this year, the official Xinhua News Agency reported on August 30. Exports of rare earths have climbed 30% in the first seven months this year compared with the same period in 2010, according to General Administration of Customs.

China, which accounts for 90% of the world's production of rare earths, a group of 17 elements used in wind turbines, hybrid cars and defence applications such as guided missiles, set its export quota of the material at 30,184 metric tons this year, little changed from 30,258 tons in 2010, government figures show.