China loses appeal against WTO ruling on curbs on trade in rare earths

China says it "strongly regrets" a decision by the World Trade Organisation to uphold its ruling that the country violated global trade rules by restricting exports of rare earth elements, used in hi-tech goods like mobile phones and televisions.

The WTO's appeal body upheld its ruling of March this year, which found China's export restrictions - including duties, quotas and restrictions of trade rights on rare earth elements and the metals tungsten and molybdenum - were not justifiable and breached trade rules.

The decision is final and, in principle, WTO member states are obliged to follow the ruling.

"China will carefully assess the ruling [and] continue to improve its management of resource-consuming products in a WTO-consistent manner," the Ministry of Commerce said.

The ministry added that it would "take future steps consistent with the WTO dispute settlement system requirements".

China has argued that the export restrictions are related to the conservation of its natural resources, and are necessary for reducing the pollution caused by mining.

"Due to the need to protect exhaustible natural resources and the environment, the Chinese government has been enhancing its management of products that [pollute and consume resources on a large scale]," the ministry said.