China also has other means of retaining control of the market besides export quotas. It has lots of capacity to refine rare earths, whereas most rich countries do not, so it can exercise control downstream. Rare-earth prices are also not likely to drop soon, even if the WTO rules against China again, because the Chinese have forced the industry to consolidate. There were once many miners but the country has recently shut down dozens of operators in Inner Mongolia and elsewhere.
China and rare earths: Of metals and market forces | The Economist
