NEW YORK, March 26 evening 9:00 , the WTO panel report released on " the United States, European Union, Japan v. China rare earths , tungsten, molybdenum export management measures related case" is given for the case of preliminary As a result, believes that the implementation of China's rare earth products such as export taxes and export quotas violate the provisions of the WTO framework . Experts said that this ruling is reasonable questionable , in fact, equivalent to force China to abandon export restrictions means opting for a higher cost , less efficient otherwise protect its resources and the environment , while at the same time, again has the world's most stringent export control system similar to the U.S. and Europe ignore their own policies practiced . Only binding on other countries , do not restrain himself . Experts pointed out that although China can not refuse to perform , but still looking for workarounds to circumvent the road , breaking the West's " Rules of discrimination ."

Mining of rare earth environmental damage

According to reports, China 's rare earth export quota for 2010 will be reduced by 40% , this results in the consumption of rare earth metals and related industries in developed economies panic . Rare has an irreplaceable role in solar panels , electric car batteries and a large number of high-tech products such as smart phones , there are also the "industrial vitamins " in the title . In 2014 the first batch of rare earth export quota of 15,110 tons , a decrease of 2.5 % compared with the first batch of rare earth export quotas last year .

Experts point out that , despite the importance of rare earth resources , but its development will create a huge burden on resources and the environment . So many Western countries to take "seal without mining" protective measures, to other countries to buy rare earths. Chinese long-term cost commitments over ninety percent of the world's supply of rare earths . In order to avoid a disorderly exit sustainable development of resources and the environment, our export quota measures taken so accustomed to Western countries inexpensive Chinese resources greatly dissatisfied , selectively ignoring the disorderly exploitation of China 's rare earth environment caused enormous damage .

According to " 2014 list of goods export license management " , China's export quota license management has 22 kinds of goods , raw materials Dispute previous rulings have made our country the abolition of the nine kinds of raw materials export quota measures , if the rare case related to non-ferrous metals and then cancel the quota management involved , then no doubt the field of non-ferrous metals will bid farewell to a "quota era" , after we found other rare disorder but was afraid it is difficult to export resources to protect this way .

"Even the rare case settled, there will be a game behind the other strategic resources. Therefore, China must be prepared at the strategic level , but also on the current domestic likely ' invited heavy criticism ' of the relevant measures for reflection. " China WTO Research Institute of Foreign Economic and Trade University Tu Xinquan said.

Actively develop " counter-measures "

Yang Guohua noted that the panel report was endorsed by the original intention of protecting environmental resources , but we believe that the wrong approach and should not restrict exports in the export sector , but it can limit the exploitation of the production chain . "Our country is exploring the establishment of normative systems consistent with WTO rules to protect rare earth and other strategic resources , such as taking the total mining limits, or resources to manage the export tax resource products . " Yang Guohua said.

Long before the arrival of the storm , China has risen to national strategic reserves of rare earth height , chaos and mining industries for long-standing , adopted a series of measures remediation rare "black industry" chain , some do not meet environmental and industrial policy rare Earth exploration and production companies have suspend production for rectification . " China should increase its efforts to integrate the rare earth industry , while strengthening environmental enforcement efforts to further promote the effective management and sustainable use of resources . " China Rare Earth Society Deputy Secretary-General Zhang Anwen said .

At the same time , the face of Western sanctions , we can not " sit still ." China WTO Research Association , said He Weiwen , on the one hand , China should step up strategic research related to strategic resource protection ; on the other hand , in the face of foreign products on our resources , " proactive " , China also should actively develop & ldquo ; and other counter-measures " against the United States of crude oil or natural gas exports may also sue on the basis of careful study on the use of WTO rules to pursue our legitimate interests .


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At 14:00 on March 26th, 2014 ( Geneva time ) , the WTO disseminated to the public in the United States , European Union and Japan appeal the panel report my rare earth, tungsten and molybdenum export restrictions WTO dispute case , ruled me about rare earths , tungsten and molybdenum the export taxes , export quotas and export quota management measures violate WTO rules . The Panel also ruled that export taxes I belong to the " Protocol of " the obligation can not invoke " GATT " exception clause ; I export quotas and management measures to protect the environment and natural resources are not related , can not be " GATT "Exceptions to the exemption provisions of the Agreement . But the Chinese expert group recognized the right to take stringent environmental measures to protect the environment and natural resources. According to WTO rules, parties may appeal within 60 days after the report circulated . This declaration of the United States , Japan , the European Union co-sponsored lawsuit lasted two years and finally had the preliminary conclusions from the implementation of China's 1998 rare earth export quota system , or will be forced to end.

In 2009 , the United States , European Union, Mexico, on the Chinese raw material export restrictions appeal to the World Trade Organization WTO. 2011 , WTO ruled that China's export restrictions of raw materials violations . Yesterday , WTO officially ruled China 's restrictions on exports of rare earths violation.

World Trade Organization (WTO) declared the United States , Japan, the European Union co-sponsored lawsuit lasted two years and finally had the preliminary conclusions of 1998 rare earth export quota system implemented or will be forced to end.

Chinese rare earth export quota controversy , began in 2008 , in the middle experienced a " Chinese raw materials WTO dispute " , and finally a comprehensive upgrade to the level of trade disputes in the WTO in 2012 . And this case from the outset , there were already signs of an adverse verdict .

There are people close to the negotiations told this newspaper revealed that the rare earth , from the outset , the U.S. and Europe mainly in China and abroad fire sale prices vary , gaining an unfair trade advantage.

Expert Group report noted that China's rare earth export restrictions adopted failed to demonstrate protection of natural resources , but not with restrictions on domestic production or consumption, with the implementation of the measures . Think of export tariffs on rare earths , tungsten, molybdenum related products taken export quota management measures and export performance and the registered capital of the rare earths , molybdenum export enterprises do not meet the requirements imposed by the relevant WTO provisions .

According to the WTO dispute settlement practice, the panel report issued within 60 days of our country can appeal . After 3-4 months , WTO will issue a final ruling. If the final ruling is still considered China's rare earth export restrictions violation, then our country will be implementing the WTO ruling, amend the related export restrictions . Russia, as a third party to join the negotiations also provided evidence to support this position. And in WTO member countries , there are also a number of developing country Members to support China's position .

China Rare Earth Association Deputy Secretary-General Chen Zhanheng an interview with reporters , said the association has prepared to present specific content of the report ruled study and evaluate the ruling influence the outcome of China 's rare earth industry and member companies , the next step would be to take some measures based on the assessment results .

In China WTO Research Institute of Foreign Economic and Trade University Tu Xinquan opinion, this export quota management system in China since the 1980s began undoubtedly a challenge. One of the most critical is that even rare cases settled, there will be a game behind the other strategic resources. Therefore, China must be prepared at the strategic level , and the current domestic likely " invited heavy criticism " of the relevant measures for reflection.

China WTO Research Association , said He Weiwen of the rules significance than practical significance of rare cases . In fact the last two years because of the international market supply and demand pattern of rare earth changes, China 's quota is not enough, but used up . So even cancel future of rare earth quotas, market and industry will not happen much impact. Management of critical rare earth industry lies in the consolidation of the country .


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March 26 , WTO announced the United States, European Union, Japan against China rare earth, tungsten, molybdenum export management measures related to the case of the panel report , ruled that the export control measures Chinese products involved violations. This means that China 's export quota management system over the years , or will be forced to cancel.

Face is likely to be canceled rare earth export quota management system , China 's rare earth companies ready yet ?

" According to regulations, upon receipt of the expert group report , there is a right of appeal , the appellate body will make a ruling within three months, within 60 days, so now is not the final case , the expert group is currently being studied law to make analysis to decide whether to appeal. " Deputy Director of the Department of Treaty and Law Department of Commerce Yang Guohua said .

Once abolish restrictions of rare earth export quota management , release of rare earth supply , get the current quota of rare earth enterprises is bound to increase competition , China's rare earth will it return to the " loess price" touting the situation?

May increase competition for enterprises, rare earth products on various parameters indicators refinement requirements of different enterprises targeted products , in addition to even cancel the export quota constraint management system , as well as export qualification , product quality and other aspects , so customers not because of little interest to change the procurement object.

"Sheng and resources at the Ministry of Commerce issued the first batch of rare earth export quotas this year , access to more than 600 tons of export quotas , prices remained stable and the industry average . For effects may want to cancel the export quota management system of the enterprise , which depends on the specific customer relationships , not simply judge. "These Sheng and resources secretaries said.

In addition, he also said that the country 's rare earth industry in 2012 and 2013 are not completely finished using export quotas.

Statistics show that the total 2013 export quota of 24,000 tons of rare earth (equivalent to the physical volume of 31,000 tons ) , the annual quota of rare earth products actual physical volume of exports 22,900 tons , an increase of 36.3% , exports amounted $ 603 million .

Wikipedia information on the rare earth industry analyst Du Baichuan , told reporters that due to the recent downturn in the rare earth downstream demand , the export volume has been far below the actual export quotas, export quotas practical significance has little importance is gradually reduced.

Du Baichuan also said that the light rare earths worldwide are abundant, and more scarce heavy rare earth , Chinese light rare earth exports proper release is possible , should focus on the protection of the heavy rare earths . Moreover, even if forced to cancel the export quotas , customs can also increase the limit ; Meanwhile, the domestic regulation of rare earth enterprises have gradually improved, such as the current national authorities to implement the rare earth industry, invoices, certificates of rare earth mineral rights management and other measures.

Need to speed up the integration of rare earth

Whether the WTO ruling will be appealed , deputy secretary general of China Rare Earth Industry Association陈占恒said the reporter , is currently in the analysis phase of the panel report , comments , " In the absence of full interpretation, complete analysis, published not mature, but will soon be concluded . "

However, industry analysts believe that the possibility of changing the ruling is unlikely.

CPPCC National Committee, China Academy of Engineering , president of the China Rare Earth Industry Association Gan Yong early March , said in an interview , "and the WTO rare earths very grim situation facing lawsuit , WTO has given us the right to appeal , but from the results, there is almost a role in delaying the execution time . "

But the WTO panel report released the same day , the aluminum Rare Ltd. in Sichuan Liangshan , Sichuan Dechang proclaimed , Chinalco 's rare earth industry consolidation platform - China Rare Earth Rare led Leshan Sheng and RE shareholder Representative corporation , utilization of Mineral Resources Chinese Academy of Geological Sciences Institute , Institute of Rare Earth new Materials Co., Ltd., Sichuan Han Xin Mining development Co. , DeChangXian owned Assets Management Co. , Ltd. and other signed agreements.

Ministry of Industry and Information Technology Division inspectors raw materials , rare earth JiaYinSong Office on the day of the meeting , said Chinalco Sichuan State Council meeting clearly lead the integration of rare earth enterprises, RE integration and the formation of working group set up six large deviation must not be allowed rare premise enterprise group .

The real risk

"In fact, the rare earth industry is currently in oversupply situation , downstream demand has weakened rare earth , rare earth prices have been low, even if the elimination of export quota management system , companies bidding space is small, the worry is not the key to the bid . " Du Baichuan told reporters.

He said that the main problem is the rare earth smelting industry overcapacity and a separate set of mining, production, circulation , smuggling as one of the chain of black interests have not been eliminated , and the resulting decline in prices of rare earth products , rare serious business losses .

Reporter finishing discovered , in the rare earth group responsible for the integration of several major companies, its performance last year are not ideal. Rising Nonferrous which the reporting period, operating income of about 1.6 billion , down 32.77% : net loss of 109 million , up 365 percent fell sharply .

The report analyzes revenue up colored Rising rare earth and related products decreased by 802.71 million yuan , of which the rare earth industry revenue down by 365.46 million yuan , rare earth and related products trading business revenue decreased by 437.25 million yuan ( of which export revenue up reducing the 310.87 million yuan ) .

Baotou Steel Rare Earth last year while operating income decreased by 8.33% to 8.47 billion yuan , net profit also fell , edged down 0.11 percent year on year to 1.44 billion yuan ; Annual Sheng and resources in 2013 , the company net profit of about 146 million yuan last year , fell 5.24 percent .

Many industry insiders believe that the current problem is the price of rare earth industry downturn , weak demand , high inventories , due Luancailuanwa still exists , is difficult to count the number of specific stocks . But look at the typical price of rare earth products , such as the price of lanthanum oxide in 2011 more than 30,000 yuan a tonne, the highest ever reached 250,000 yuan , but currently only 20,000 yuan / ton.

Overcapacity and price slump is currently facing a number of challenges rare earth enterprises , and the integration of a large group of rare earth has been slow , perhaps the elimination of export quota system , allowing the export of rare earth return to the market will bring these companies a way out.


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Today, the rare earth market due to continued weak demand for cold adjustment . Downstream magnetic , fluorescent , luminescent , alloy four major downstream industry procurement is still light, low market turnover significantly .

Dysprosium oxide mainstream manufacturers tax 160-170 yuan / ton, dysprosium iron mainstream manufacturers tax price 165-175 yuan / ton.

Praseodymium oxide mainstream manufacturers tax price 570,000-580,000 yuan / ton. Neodymium oxide 310,000-320,000 yuan / ton.

Lanthanum oxide manufacturers tax price 21,000-22,000 yuan / ton. Cerium oxide mainstream manufacturers tax price 21,000-22,000 yuan / ton.

Neodymium oxide, praseodymium mainstream manufacturers tax price 315,000-325,000 yuan / ton , praseodymium , neodymium metal mainstream manufacturers tax price 410000-42,000 yuan / ton.

Fluorescent europium oxide mainstream manufacturers tax price 4,000-4,200 yuan / kg. Terbium oxide phosphor grade mainstream manufacturers tax price 3,000-3,200 yuan / kg.


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