You're reading: World Trade Organization rules against China on raw materials

The World Trade Organization has ruled against China for limiting exports of some raw materials in a case brought by the U.S., European Union and Mexico.

A WTO panel in a report Tuesday rebuffed China’s argument that its export limits were needed to protect its environment. The complaint filed in 2009 says China unfairly favors domestic industry by setting export quotas.

China can still appeal the panel’s decision.

The ruling affects export quotas on materials such as coke, bauxite, magnesium and silicon metal.

But it may be more important in helping the U.S. and Europeans support another trade complaint against Chinese attempts to restrict exports of rare-earth materials that are used in many high-tech products.