The Sino-US trade litigation war around the "Rare Earth Export Policy" has become hot. The reporter learned from authoritative sources that in order to expand the fruits of victory and let China fall into a passive state, the US has filed an appeal application with the WTO a few days ago. At the same time, China is actively preparing for the war, or will file an appeal application in the near future.
On March 26th, Geneva time, the World Trade Organization announced the report of the expert group on the export management measures of rare earth, tungsten and molybdenum related products in the United States, the European Union and Japan v. China, and ruled that the export management measures of the products involved in the case were illegal. According to the WTO rules, both parties can appeal within 60 days of the issuance of the report of the expert group.
“The Ministry of Commerce has recently convened several lawyers and industry experts to hold internal meetings to discuss the possibility of appeals and specific strategies. The industry generally believes that the panel reports discriminatory rulings and supports the majority of appeals.†An industry insider told The reporter, and the US appeal undoubtedly made us somewhat passive. "We must cross the appeal immediately, and the US is obviously not willing to give us too much time to prepare." The above-mentioned person told reporters.
Insiders of the China Rare Earth Association told reporters that after the rare earth defeat, the association also organized enterprises and experts to evaluate the impact of the results on the industry, and also conducted several discussions with the Ministry of Commerce to prepare countermeasures. A large-scale domestic rare earth group executive told the Economic Information Daily on the phone that the most worrying thing from the perspective of the enterprise is that after the breakdown of the rare earth foam, the performance of the rare earth industry is relatively low, and the export situation is also very weak. After the defeat caused the cancellation of the rare earth export control policy, this signal may cause the price of rare earth to continue to fall, making the industry worse.
However, a contradictory reality is that Western countries such as Europe and the United States have counterclaimed China’s export restrictions, but there is a slap in the face of their own strategic resources. Some scholars have pointed out that more than 20 countries have adopted various measures to restrict exports in the field of resources and energy. For example, the “domestic demand test†adopted by a Canadian state on timber exports, that is, the sale of timber only in domestic and state, will only consider export after meeting internal demand. Another example is the “export license approval†adopted by the United States for natural gas exports.
The intention behind China's rare earth reclamation, the United States and Europe and other Western countries is very obvious, in order to impact China's resource protection system. Experts pointed out that Western countries such as the United States and Europe often use the skillful techniques to play with the rules. Even those rules that are fair in their own right can often be successfully distorted. Instead, they are labeled as violating the rules and regulations of developing countries and regions that are based on the WTO rules. "hat of. In his view, in the face of foreign "active attack" on China's resource products, China should also actively reserve "countermeasures." Can China's rare earth regain a game? Liu Jingdong, director of the International Economic Law Office of the Institute of International Law of the Chinese Academy of Social Sciences, told the Economic Information Daily that there are two points in the expert group report that are worth discussing. First, regarding the export tax, the Chinese government can use the GATT (General Agreement on Tariffs and Trade) Article 20 (General Provisions on Environmental Protection) to defend. Although China’s WTO accession agreement does not directly invoke 20 articles, it is unfair to deny China’s basic “self-evident†right as a member state. In the rare earth case, one of the three members of the expert group recognized this right of the Chinese side, and developing members such as Brazil and Russia also expressed their approval. Regrettably, the other two panelists inherited the views of the previous nine raw materials cases and believed that China has no right to use 20 articles.
The second is about the Chinese government's export restriction measures. Although the expert group supports the original intention of protecting the Chinese environment, the group believes that specific measures such as export quotas are inconsistent with WTO regulations. "Some specific views have been partial and have not accepted the Chinese defense. We cannot completely negate the measures themselves because the Chinese have not achieved the expected results in the implementation of the measures. This is also unfair." Liu Jingdong said.
"There is still room for appeal on the above issues." Gong Baihua, a professor at Fudan University Law School, also told the Economic Information Daily. He said that the WTO dispute settlement mechanism has a set of "reasonable" mechanisms, and the parties need to provide evidence and explain the treaty according to this set of rules. Of course, we can think that the expert group has deviations in applying this set of rules and objectively causes "unfairness". In this regard, it is necessary for the Appellate Body to check the possible "unfairness". On another level, regardless of whether the appeal wins or loses, China can complete the one-to-two-year policy adjustment time slot after completing the procedure.
"I personally think that the rights should be further protected through appeals." Liu Jingdong said that although the Appellate Body is "only examining the law and not examining the facts", we are unlikely to turn over, but we still have to fight for basic rights through action and show our attitude. He said that the WTO is different from the domestic case, and its significance is not only the outcome itself, but the expert group report is only the first instance. If it does not appeal, it means obedience. This is a different point of view and there is a difference.
An insider pointed out that China should continue to fight. No one can guarantee the loss or win of a lawsuit. Compared with the result, China’s participation as a responsible trading power and member state is of great significance. It is both an attitude of safeguarding one’s own rights and a clarification of the rules of multilateral dispute settlement mechanism. Responsibility for key issues in the process.
In the first instance, the case was defeated by the US appeal. In addition to the litigation procedure of the case itself, Liu Jingdong said that the reason why China’s rare earth case was lost was because the domestic management measures did not achieve the intended purpose and would “given the handleâ€. The domestic management system should reflect on it, the legislation should be coordinated and unified, and the central and local policy formulation should be refined. Gong Baihua also said that how to deal with the relationship between economic development and environmental protection; the local interests of economic development and the overall interests of national development; and the issue of encouraging export and export management are worthy of reflection.
On March 26th, Geneva time, the World Trade Organization announced the report of the expert group on the export management measures of rare earth, tungsten and molybdenum related products in the United States, the European Union and Japan v. China, and ruled that the export management measures of the products involved in the case were illegal. According to the WTO rules, both parties can appeal within 60 days of the issuance of the report of the expert group.
“The Ministry of Commerce has recently convened several lawyers and industry experts to hold internal meetings to discuss the possibility of appeals and specific strategies. The industry generally believes that the panel reports discriminatory rulings and supports the majority of appeals.†An industry insider told The reporter, and the US appeal undoubtedly made us somewhat passive. "We must cross the appeal immediately, and the US is obviously not willing to give us too much time to prepare." The above-mentioned person told reporters.
Insiders of the China Rare Earth Association told reporters that after the rare earth defeat, the association also organized enterprises and experts to evaluate the impact of the results on the industry, and also conducted several discussions with the Ministry of Commerce to prepare countermeasures. A large-scale domestic rare earth group executive told the Economic Information Daily on the phone that the most worrying thing from the perspective of the enterprise is that after the breakdown of the rare earth foam, the performance of the rare earth industry is relatively low, and the export situation is also very weak. After the defeat caused the cancellation of the rare earth export control policy, this signal may cause the price of rare earth to continue to fall, making the industry worse.
However, a contradictory reality is that Western countries such as Europe and the United States have counterclaimed China’s export restrictions, but there is a slap in the face of their own strategic resources. Some scholars have pointed out that more than 20 countries have adopted various measures to restrict exports in the field of resources and energy. For example, the “domestic demand test†adopted by a Canadian state on timber exports, that is, the sale of timber only in domestic and state, will only consider export after meeting internal demand. Another example is the “export license approval†adopted by the United States for natural gas exports.
The intention behind China's rare earth reclamation, the United States and Europe and other Western countries is very obvious, in order to impact China's resource protection system. Experts pointed out that Western countries such as the United States and Europe often use the skillful techniques to play with the rules. Even those rules that are fair in their own right can often be successfully distorted. Instead, they are labeled as violating the rules and regulations of developing countries and regions that are based on the WTO rules. "hat of. In his view, in the face of foreign "active attack" on China's resource products, China should also actively reserve "countermeasures." Can China's rare earth regain a game? Liu Jingdong, director of the International Economic Law Office of the Institute of International Law of the Chinese Academy of Social Sciences, told the Economic Information Daily that there are two points in the expert group report that are worth discussing. First, regarding the export tax, the Chinese government can use the GATT (General Agreement on Tariffs and Trade) Article 20 (General Provisions on Environmental Protection) to defend. Although China’s WTO accession agreement does not directly invoke 20 articles, it is unfair to deny China’s basic “self-evident†right as a member state. In the rare earth case, one of the three members of the expert group recognized this right of the Chinese side, and developing members such as Brazil and Russia also expressed their approval. Regrettably, the other two panelists inherited the views of the previous nine raw materials cases and believed that China has no right to use 20 articles.
The second is about the Chinese government's export restriction measures. Although the expert group supports the original intention of protecting the Chinese environment, the group believes that specific measures such as export quotas are inconsistent with WTO regulations. "Some specific views have been partial and have not accepted the Chinese defense. We cannot completely negate the measures themselves because the Chinese have not achieved the expected results in the implementation of the measures. This is also unfair." Liu Jingdong said.
"There is still room for appeal on the above issues." Gong Baihua, a professor at Fudan University Law School, also told the Economic Information Daily. He said that the WTO dispute settlement mechanism has a set of "reasonable" mechanisms, and the parties need to provide evidence and explain the treaty according to this set of rules. Of course, we can think that the expert group has deviations in applying this set of rules and objectively causes "unfairness". In this regard, it is necessary for the Appellate Body to check the possible "unfairness". On another level, regardless of whether the appeal wins or loses, China can complete the one-to-two-year policy adjustment time slot after completing the procedure.
"I personally think that the rights should be further protected through appeals." Liu Jingdong said that although the Appellate Body is "only examining the law and not examining the facts", we are unlikely to turn over, but we still have to fight for basic rights through action and show our attitude. He said that the WTO is different from the domestic case, and its significance is not only the outcome itself, but the expert group report is only the first instance. If it does not appeal, it means obedience. This is a different point of view and there is a difference.
An insider pointed out that China should continue to fight. No one can guarantee the loss or win of a lawsuit. Compared with the result, China’s participation as a responsible trading power and member state is of great significance. It is both an attitude of safeguarding one’s own rights and a clarification of the rules of multilateral dispute settlement mechanism. Responsibility for key issues in the process.
In the first instance, the case was defeated by the US appeal. In addition to the litigation procedure of the case itself, Liu Jingdong said that the reason why China’s rare earth case was lost was because the domestic management measures did not achieve the intended purpose and would “given the handleâ€. The domestic management system should reflect on it, the legislation should be coordinated and unified, and the central and local policy formulation should be refined. Gong Baihua also said that how to deal with the relationship between economic development and environmental protection; the local interests of economic development and the overall interests of national development; and the issue of encouraging export and export management are worthy of reflection.
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