Analysis of rare earth industry response WT0 losing predicament

In response to the WTO may come against difficulties, China Rare Earth hands ready to do enterprise level , on the one hand to expand the scale of restructuring and integration to form BaoTuan force, on the other hand the development of diversification. At the national level, a number of New Deal response is brewing export change in the situation , including the crackdown private mines and so on.

WTO Disputes Settlement Subcommittee on the United States, Japan, Europe and the needle since early 2012 on the Chinese rare earth export controls have already made a preliminary ruling proceedings , basically agreed plaintiff 's argument that China has in the rare earth export restrictions , export taxes and other practices violated commitments. Although this news has not been the World Trade Organization (WTO) for official confirmation , but this insiders believe that China lost within expectations , the future China will expand or rare earth export quotas. So, this decision will be China's rare earth enterprises and what impact ? Chinese enterprises will be how to deal with ?

Perhaps the situation is not so bad

Learned that because the message without official confirmed that the current prevalence of academia but also all kinds of speculation and controversy, Foreign Trade University, China WTO Research Institute , said Tu Xinquan , the current WTO is only tentative judgment issued by the relevant national notice Distance final ruling is still some time, but almost no hope to win the future China will have to cease the levying of rare earth export taxes , but export quotas might be able to fight .

Insiders bluntly: " the unsuccessful outcome is Chinese rare earth quotas cancellation policy , open the supply of rare earths , the government can not constrain the export business behavior . " Past experience shows that companies competing prices is inevitable. Because of the quota system disappeared ( without limiting exports ) , the face of the huge benefits , China 's excessive and indiscriminate digging earth , illegal smuggling of exports and other issues, or to re- emerge in the market , while the rare return to the " cabbage price" also increasing the likelihood .

Xiamen University, China Energy Economic Research Center Lin Boqiang but somewhat disdain , he said: "I did not so exaggerated . "On one hand , has not been officially confirmed , 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. Even if true , it would not cause much impact on China's rare earth industry , particularly strategic resources in their own hands , is not wrong ; the other hand, status quo, for their own environmental protection , quotas system should not be canceled short-term .

It is understood , 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 . " "Once the results are unfavorable to China , China will certainly be carried out within the framework of the WTO complaint . " litigator Hao Junbo International Business Times said that for China .

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 . "

China is the world 's rare earth resources most rich countries, while 80 percent of China 's rare earth resources concentrated in the header.

Some large state-owned enterprises generally rare means "not so pessimistic ." Baotou Steel Rare Earth Wei Hua shares Xiamenwuye other 12 rare earth production and circulation enterprises invested 10 million yuan each common form of rare earth trading platform - Baotou Rare Earth Products Exchange Limited was established . The company was founded signified by the enterprises themselves, the sponsoring organization of rare earth rare earth products to complete the formation of spot trading platform , the platform will host China's first rare earth products electronic disk operations. Insiders expect the trading platform to be able to play a positive role in stabilizing prices of rare earth .

It is worth mentioning that, in the unity of national strategic planning development, many private enterprises have gradually been rare SOE merger integration , such as Baotou Rare Earth consists essentially of Baotou Rare Earth Group's control . Baotou largest private manufacturer Baotou Rare Earth Rare Earth Co., Ltd. China Magnesium has an equity price , no independent production and management of rare earth .

Another rare in Inner Mongolia eliminated upstream enterprise integration work, 35 were included in the consolidation phase in the enterprise, 13 included in the scope of cooperation restructuring Baotou Steel Rare Earth , 18 to implement compensation off , four were eliminated shut down . This marks the Baotou Steel ( Group ) Corporation mainly light rare earth resources in northern China unified mining, uniform dressing, smelting separation unified , unified operation and management of the franchise initially formed .

The southern provinces are also engaged in the integration of rare earth enterprises , such as explicit by the Guangdong Guangdong Group completed the rare earth industry in Guangdong Province, the existing rare earth mining, smelting separation of enterprise integration . February 27, 2012 , relying Guangdong Rising Assets Management Co., Ltd. of Guangdong Province as the main rare earth industry group was formally established , and strive to become the national focus on the development of the three rare earth enterprise groups.

In addition, the Commerce Department also issued in June invoices earth system as the "national franchise system " technology -based rare earth invoices in Inner Mongolia and Sichuan, the first pilot . This means that , following the salt industry and tobacco industry to adopt national franchise , the rare earth industry will also be included in the "national franchise " range. Industry sources said the franchise system will cover China rare earth rare earth mining , smelting , processing, sale of the entire industrial chain. More specific system designed by rare earth reserves , mining , smelting , consumption of four parts , mining , smelting and consumer enterprises system authentication and network signed a year into the reserves of rare earth mining and consumption of two areas , completely blocking illegal manufacturers to obtain rare earth way . It is foreseeable that the government is bound to accelerate the ongoing process of integration of domestic rare earth enterprises , as soon as the end of the rare earth industry, private mining overdraft excess production , as well as disorderly competition chaos . Currently hundreds of domestic rare earth enterprises will eventually be integrated into two or three . Clear pattern has not yet formed

Nevertheless , the aforementioned Baotou Rare Earth business people still believe that the integration of rare earth clear pattern has not been completed . "The government will make use of the time for appeal previously thought to achieve integration purposes to play on the international market picked up a fist fight out effect, but did not expect to be so hard to integrate , local, inter-enterprise , as well as upstream and downstream , etc. are all playing the abacus , each hold the interest . "

And there is no clear pattern of integration , it means that the market disorder and produce surplus situation will continue to exist, Deputy Secretary-General Chen Zhanheng Chinese Rare Earth Society said, now is oversupply, the annual quota of 30,000 tons , the actual sales 10,000 tons . One can not ignore the background , the current domestic rare earth separation smelting capacity has been severely surplus. Ganzhou Rare Earth Qiandong Bin Gong Group Chairman and Managing Director said that the current separation of the South ionic rare earth smelting capacity has exceeded 100,000 tons , and as the boss of Jiangxi Province, Southern Rare Earth 2013 production targets for the first batch of 3,950 tons .

According to the China Rare Earth Industry Association, introduced the Secretary-General Ma Rongzhang Southern separated ion ore smelting enterprises to obtain more than 70% of unknown origin . According to statistics, China 's rare earth more than 200,000 tons , the actual annual production capacity of 15-18 million tons, while the actual global annual demand of 13 million tons, China 's demand of about 100,000 tons .

Chinese Society of Rare Earths expert who requested anonymity said that although the pattern of rare earth supply diversification trends are becoming evident , " but if the abolition of quotas and tariffs , China rare earth prices will plummet , may again squeeze rare in other countries production line. "


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