Rare cases Surrounded profound lesson for China

Geneva time on March 26 , the World Trade Organization (WTO) announced the United States , European Union, Japan v. China rare earths , tungsten, molybdenum export management measures related to the case of the panel report , ruled that the export control measures involving Chinese products in violation of the WTO relevant regulations. Following this ruling was " nine kinds of raw materials case" , Chinese rare earth export restrictions has once again been ruled WTO violation. While China may within 60 days on this appeal , but as the legal profession said , " completely overturned the conclusions of the panel report little chance of winning ."

In general, China is from 2010 onwards to restrict the export of rare earth products. At that time , the Sino-Japanese diplomatic friction in China to reduce rare earth exports to Japan for the incision to begin exports of rare earths in the country to rectify the chaos , the integration of rare earth resources , proceed with disorderly exploitation of the increasingly serious environmental problems caused by rare earth .

Rare is recognized as a strategic matter , the more technologically advanced country , the greater its requirements . Some time before 2010 , China 's rare earth export monopoly of the market share of more than 90% of the world's rare earths , of course, will determine the world's rare earth market prices . He was a period, although disorderly competition between domestic rare earth mining and export enterprises "civil war ", leading not dominant in its "foreign war" aspects of rare earth prices, but overall, the world market for rare earths prices are set by competition among Chinese companies decided .

After 2010, due to Chinese export restrictions , caused part of the following year, the world's rare earth market prices rose as much as 500%. However , due to the extremely high rare earth prices , the United States and Japan and other countries in other countries began buying direct exploitation of rare earth minerals , some other countries also took the opportunity to develop rare earth resources, which led to the world's rare earth market crash. Last year , the world's rare earth market prices continue to decline , the highest point in 2011 compared with a decrease of 60%. Such a low price , and even a former monopoly in the world market price of Chinese rare earth enterprises to re- occupy the high threshold of the market.

The above WTO panel report that China's rare earth export tariffs , tungsten, molybdenum related products take management measures and export quotas for rare earths , molybdenum export enterprises export performance requirements , such as capital requirements and registration does not comply with the relevant provisions of the WTO. Evidence based on the investigation report stated that China's rare earth export restrictions adopted not only failed to prove the protection of natural resources related to , but also not associated with domestic production or consumption restrictions implemented together .

If the report is not true, then , no doubt, to limit exports of rare earths to the United States and Japan and other countries to take measures to China in 2010 , it is neither in the world to improve the rare earth market discourse purpose , but also did not meet to take consolidation of domestic rare earth production and export of chaos disorderly competition goals. More important is , as stakeholders have said, the subsequent effect of the rare earth case is China's current export control system unsustainable.

According to the latest " 2014 list of goods export license management ," China's current export quota license management practiced there 22 kinds of goods , export quota bidding has four . After " nine kinds of raw materials case" ruling executive , China has been forced to cancel the export quota measures nine raw materials. So, if the rare case the ruling is executed , then the Chinese will bid farewell to the era of non-ferrous metals quota field . This is definitely a disruptive change to the export quota management system since the 1980s, China began to implement the .

So the outcome of rare cases , it may be prompting people to seriously consider economic integration in the world trading environment , particularly in the case of China has become the world's largest trading volume calculated by easily , whether it is the implementation of the WTO China Trade Orders and regulations approved in their favor , or stick to the original approach to their advantage . One of the goals of China's accession to WTO , is to help the momentum of its rules to impact some domestic interests cured by irrational production and export system. Here the so-called irrational, first of all not unreasonable for foreign traders , but more important is the subject of China's domestic market is unfair .

Thus , with the WTO 's momentum flow, changing only lead to a lose-lose some domestic irrational system, which is actually a wise choice.


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