Rare Battle: WTO do not "pull side frame"

"The Middle East has oil , China has rare earth ." Petroleum Exporting Countries (OPEC) on oil exports to take a quota system in Europe and America without objection , Japan honestly follow ; to protect the environment, combating smuggling and to ensure sustainable development of industry , China's rare earth export quota system to take the same , but the Western and Japanese protest appeal WTO (WTO). Recently there have been news that , WTO considered that the appeal reasonable -

October 26 , Japan's " Industry News" reported that in the U.S., EU and Japan jointly sued China " undue restrictions on exports of rare earths " issue , WTO dispute mechanism summary of the " Interim Report of the United States and Europe generally considered reasonable demands " and advised " Chinese rectify misconduct . "

" will be introduced in late November, the final report is not expected to overturn the judgment, United States and Europe may favor on this issue . " the report said , " In the WTO trade disputes the idea prevailed against the United States and Europe , which means that China 20 years to date resources diplomatic strategy to stall. "

"I did not so exaggerated . " Xiamen University, China Energy Economic Research Center Lin Boqiang ," International Finance , "told reporters , " On one hand , the Japanese media reports have not been officially confirmed , even if true , it would not cause much impact on China's rare earth industry , in particular, the strategic resources in their own hands , is not wrong ; the other hand, status quo, for their own protection and so on, not short-term quota system should be abolished . "As of " International Finance "reporter writing, including the Ministry of Commerce , Ministry of Industry and other ministries has not released information about the rare earth litigation , WTO also did not release information.

WTO preliminary ruling against China

For China 's export of raw materials . 2009 trade war " rampage " of the occasion , the U.S. and the EU in the WTO trade disputes within the framework of China made ​​the request , accusing China 's bauxite , coke, fluorspar , magnesium, manganese , silicon metal , silicon carbide, yellow phosphorus and zinc and other 9 kinds of raw materials to export quotas and export tariffs, price and quantity control , in violation of China 's 2001 accession to the WTO commitments , resulting in other countries in the steel, aluminum and other chemical products production and exports at a disadvantage.

January 30, 2012 , WTO ruling : China implemented a variety of industrial raw materials export taxes and quotas violated WTO rules and dismissed the Chinese environmental protection or supply shortages based on the preliminary ruling request an appeal .

This allows European countries caper , leaving the industry worried about China's rare earth policy , because in this area China also adopted a quota system . Sure enough , last seen in March "spreading rumors " after that year on June 27 , the United States , the EU , Japan v. China rare earth, tungsten, molybdenum, three kinds of raw materials, the WTO Dispute export management measures , formally filed to the WTO Dispute Settlement Body establishment of a panel request .

In this regard, Japan's " Sankei Shimbun" said that in Japan, the U.S. and the EU joint prosecution Chinese undue restrictions on exports of rare earths issues , WTO Dispute Settlement Body 's interim report summarizes the general finds reasonable demands of United States and Europe .

Japan's Kyodo News said , WTO presented to the interim report of the countries concerned , and to listen to China and other countries in the comments on the report , summary of the final report , plans announced during the year . Kyodo news agency said , in general, the contents of the interim report will be basically reflected in the final report.

For the Japanese media say, China has not been the official stance . "With previous experience in favor of nine kinds of raw materials , China 's exports of rare earth loses, or is not unexpected . " Lin Boqiang that , " but in general, the global trade environment, Europe is still standing better than the Chinese wind in public opinion . In fact, the adoption of a quota system , China is not the first , but not the only one . The most typical example is , OPEC country's oil exports , that is, according to a quota system . So far, Europe and the United States did not take it that matter . "

Some media said , according to " China 's WTO accession protocol " agreement, China exported products should be abolished for all taxes , unless expressly provided . Media, annex lists 84 kinds of products specified rate , which , rare earth tax rate of approximately 10%. According to the 2010 public reports, " metal neodymium ( a rare earth element ) may range from 15% to 25% , with exports of neodymium iron boron rejection rate may be increased to 20% from zero . "

Government and industry should strongly appeal

It is said that the first instance verdict WTO panel report will be released in mid-November . According to the process , the panel hearing the equivalent of " first instance ", if dissatisfied with the Panel report , China could appeal to the WTO High Commission for final decision .

"Once the results are unfavorable to China , China will certainly be carried out within the framework of the WTO complaint . " International litigator Hao Junbo ," International Finance , "told reporters , " After all, the earth is related to an important resource for national interests , rather than give up , not as fight for the greater good , to avoid greater losses. "

According to China's nine kinds of raw materials prior to the experience of an appeal , when the final results published in the WTO , WTO panel to correct the previous part of the award : quota allocation management, export licenses , export minimum price , the overall quota bidding decision invalid and so on. This avoids the Chinese experience in the field of raw materials in greater losses .

"Crown will certainly be a complaint . " a rare earth industry also ," International Finance , "told reporters , after all , China has always stressed that before the protection of the environment and the fight against smuggling, reasonable, fair and reasonable .

In fact, the Commerce Department has repeatedly said that on the rare earth issue, China policy objective is to protect resources and the environment and achieve sustainable development, has no intention of trade-distorting way to protect domestic industries . China has always respected the rules of the WTO , and actively fulfill WTO commitments. Commerce Department had also said, " China will carefully study the prosecution panel filed a request , and according to WTO dispute settlement procedures to be properly addressed. "

Last year, the Ministry of the person concerned has publicly said that China will actively responding to, and stressed that " China 's rare earth policy measures taken entirely for the protection of resources, environment and sustainable development, in line with WTO rules ."

"However, the complainant should pay attention to skills . " Hao Junbo suggested," on the one hand , if the result is true , the Chinese government departments still have reasoned to express China 's rare earth interests ; the other hand, China 's industry associations and enterprises, but also helps improve the relevant official complaint report , show their attitude. In short, is to the greatest extent possible to avoid China's exports of rare earths on the loss. "

Efforts to accelerate industry mergers and acquisitions

" Finance News" reporter who interviewed last year, too many business people and analysts bit rare , they were of the view that , once lost, China will likely open in the rare earth policy control , which means that the quota system disappeared ( without limiting exports ) , the huge interest in front of Chinese rare earth excessive and indiscriminate digging , smuggling and illegal export of such issues , or re- emerge in the market , while the rare return to the " cabbage price " possibilities are also increasing.

"This is also not conducive to China 's rare earth industry virtuous cycle of development . " the source said.

According to media reports , WTO principle, requires the elimination of export restrictions, but provides for two exemptions : "To protect people , animal or plant life or health measures " and " with the protection of exhaustible natural resource-related measures if such measures with restrictions on domestic production or consumption with the implementation . "

In this regard, Foreign Trade University China WTO Research Institute Tu Xinquan that most of China's rare earth industry meet the above requirements, but did not do the export quota and the number of domestic consumption to maintain consistency , "So China under the framework of the WTO may request to retain the rare earth export quota , while the quota extended to domestic consumption and consistent level . "

But Lin Boqiang that the long term, Chinese rare earth quotas certainly still will continue to suffer criticism. Therefore , the most fundamental strategy or " from the inside ", that govern domestic rare earth first chaos , then consider external policy .

In Boqiang view, which is very important initiative is to gradually form a large Rare Earth Group , allowing small or workshop-type rare earth enterprises has been completely eliminated or integrate completely avoid smuggling and excessive and indiscriminate digging situations.

In fact, in 2011 the State Council issued the " State Council on promoting the sustained and healthy development of rare earth industry, a number of opinions" , proposed a period of two years , " the basic form to large enterprises as the leading rare earth industry pattern ." Also this year, August 7 , the Ministry of raw materials Industry Division also issued a document , said: eight departments will organize illegal acts against the rare earth industry special action "requirement for local governments in the region overall responsibility for management of the rare earth industry , since 2013 August 15 to November 15 in the fight against rare earth mining , production, circulation of illegal special action . "

A brokerage said in a research report , led by the Ministry of earth large group program has been submitted to the State , once the program is approved , the formation of a large group of rare earth is expected to officially start .

"But the difficulty lies in the integration of local government . Related small and medium enterprises are often rare local government tax ' bulk ' . Therefore, how to coordinate the relationship with the local government , is the key to integration of rare earth . " Lin Boqiang said.


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