WTO panel views China's rare earth export caps as violating rules

A World Trade Organization panel has broadly upheld a complaint that China's restrictions on rare earth exports run counter to WTO rules, sources close to the matter said Friday.

The dispute settlement panel did so in its interim report distributed to relevant parties including Japan, the United States and the European Union that filed the complaint with the WTO, they said.

The panel will issue a final report, possibly within the year, after hearing from China and other parties. Usually, a WTO dispute settlement panel's final report endorses an interim one.

If dissatisfied with the final report, China will be able to take the dispute to the WTO Appellate Committee.