Review of China’s Rare Earth Export Control Policy in International Law

Abstract

As the leader of the global rare earth supply chain, China’s export control policy has long been at the center of the legal game of international trade. Based on the historical evolution of rare earth export control measures in China and the World Trade Organization’s “China Rare Earth Case” ruling as a logical starting point, this paper systematically examines the compliance of China’s current rare earth control system under the framework of international law. It is found that after losing the case, China abandoned the pure means of export quotas and tariffs, and turned to a compound management and control mode centered on resource tax, environmental regulation, and the Export Control Law. Through text analysis and systematic explanation, this paper holds that the current measures have avoided the risk of direct violation of the General Agreement on Tariffs and Trade and the Protocol on China’s Accession to the WTO to the maximum extent. Among them, the domestic regulation based on environmental protection has a strong defense space for compliance, while the item control under the Export Control Law faces the problem of proof of a national security exception. The essence of rare earth export control is the deep tension between national economic sovereignty and the principle of free trade. China should make good use of the policy space given by international law while adhering to the sovereignty of resources, and realize the paradigm shift from passive compliance to active shaping of rules.