China should strengthen the control of rare earth supply chain

Not long ago , the U.S. House of Representatives Rules Committee passed the " 2013 National Strategic and Critical Minerals Production Act" consideration of the General Assembly formally tabled in the House discussed the bill was in February 2013 by the U.S. House of Representatives proposed Delaware Republican congressman Amoudi , at present , nearly 60 members signed in support of the bill. The bill plans to reduce dependence on Chinese rare earths .

And as early as March 13, 2012 , U.S. President Barack Obama announced that the U.S. joint EU and Japan, and other parts of China's rare earth export restrictions on raw materials filed a trade complaint to the WTO , the proposal is to force China to continue to maintain a large number of rare earth exports , and the price is not too high. The author believes that "force" China continues to export cheap does not comply with international practice, but release the rare earth mining ordering practical significance.

As we all know , is a rare earth mineral resources , military industry and other high-tech industries are widely used, have the oil, food is just as important to the basic product attributes . Comrade Deng Xiaoping once said , "The Middle East has oil , China has rare earth ." At present, China has the largest rare earth reserves and production , accounted for 97% of global supply . Since the 1970s , China had more than 90% owned reserves , but China is the only one able to provide all the 17 kinds of rare earth metals in the country. But with the large number of mining, 2011 reserves had fallen to 23%. The United States , Australia, the European Union and other countries to maintain a large number of rare earth reserves , but not mine , the relative lack of rare earth resources in Japan , the Japanese import large quantities of Chinese rare earth, rare earth products and a large number of reserves to maintain its production in the future .

From an economic perspective, is a rare commodity , but it is a special commodity , from a global point of view , or a " strategic products", or the " weapon products", he explains the scarcity of its resources On the other hand earth has important strategic significance. Therefore , the non-renewable , but also need to be imported , or a large number of mining, but mining requires a lot of labor input , but also pollute the environment. Many developed countries are highly dependent on Chinese rare earth , such as the 2011 Japan accounted for 56 %, U.S. 14% .

For a long time , China did not attach importance to the importance of rare earths . Mainly for 90-100 large number of rare earth mining companies , competing and low-priced exports , causing environmental pollution , wastage of resources , and the large number of exports go to developed countries . While developed countries are not rare earth mining country , and a large number of rare earth imports . Because the earth has a non-renewable resources, but reserves are limited, in the mining process , polluting the environment , so from cost considerations, many developed countries, it is not mine , but a large number of rare earth imports from China , and many Chinese enterprises compete with each other to make rare earth prices cheaper.

In recent years, Chinese government has gradually recognized as an important product characteristics of rare earth , so from 2007 , the state began limiting mining, export restrictions , such as to restrict production , the development of export quotas, export duties levied way , by economic means export restrictions , but suffer from the U.S., EU , Japan, Canada and other countries to obstruct .

The author believes that the future of China should first establish a sustainable earth reserves and maintain high reserves . Avoid excessive exploitation of rare earth reserves, which lay the foundation for sustainable development in China , the development of China's rare earth mining industry policy , limiting the number of mining , in 2015 30% of the world 's reserves remain for China's economic and social basis for sustainable development .

Secondly, the mining and export management , adoption of a quota system and raise export tariffs. For blind export problems should be taken to limit the production of industrial policy and adopt export quota system to limit the blind exports, exports of rare earth high tariffs . At present, China accounted for 97 % of the world market is not sustainable, but also by the low labor costs and lower prices brought about , it can be appropriate to reduce the production , to reduce the share.

Furthermore, is to increase scientific and technological input , improve resource utilization and recovery of rare earths . Emphasis on rare earth mining , processing, storage, transportation, recycling, reuse of scientific and technological input , to avoid extensive management, reduce losses and waste, improve the operational efficiency of the domestic rare earth industry .

Finally, strengthening the control of rare earth supply chain and conditionally make the supply chain main chain . Rare earth exploration, mining , processing, storage, transportation, recycling, reuse is a supply chain , China should play in the supply chain chain master role can be appropriately involved in the supply chain operations, from supply chain to the regional supply chain, from regional supply chains to global supply chains , which really play a leading role , not just the so-called pricing power, the right to speak .


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