Rare earth export quotas in doubt whether to cancel

China will continue for many years to cancel rare earth export quotas ? World Trade Organization (WTO) ruling released report on Chinese exports of rare earths dispute resolution , litigation support requirements of the U.S., EU and Japan , ruled in violation of the rules on China 's rare earth export restrictions imposed .

Commerce Department of Treaty and Law Department official responded that China is currently evaluating the report panel decisions , and resolve to do a proper follow-up procedures under the WTO dispute .

Expert Group on WTO dispute settlement mechanism in the report said that China , including 17 kinds of rare earth materials, such as tungsten and molybdenum export restrictions imposed three . Difference is that on the rare earth export tariffs on raw materials in many forms , and for a certain time period exports imposed quotas, as well as to specific restrictions on the export of these raw materials enterprise rights .

This is from the rare case began in March 2012 , the tug of war after nearly two years after losing the Chinese side has been identified .

WTO could have a fight , this one is about environmental protection , " explained WTO is not the adoption of losing this one, because the reason for taking a quota policy is environmentally friendly ."

In fact, when this lawsuit began , the Chinese side to do the worst .

"State of the original idea should be by the WTO Appellate this time, accelerating the integration of rare earth enterprises , even if ultimately unsuccessful , it is possible to form a strong and large group of foreign high efficiency docking. " Baotou a rare case of corporate executives to the reporter said.

Earlier newspaper reports, although rare is a small industry, but indiscriminate digging abuse , environmental pollution, excess capacity has been plagued this industry, China two years ago began a strong consolidation and gradually determine the formation of rare large corporations strategy.

However , excessive focus on the country 's rare earth industry , but also to directly interfere with the policy level have been rare earths market property , eventually evolved into a lucrative speculation , the first damages the chain.

This year 's "two sessions ", the president of the China Rare Earth Industry Association Gan Yong told the media that , faced with a very rare case grim situation , they have to appeal to delay the execution time . "WTO has given us the right to appeal , but the results, almost delaying action execution time. "

The situation is difficult to change if he loses , China 's rare earth export quota will face is broken .

This is actually Chia want to see : Chia where enterprises are mainly engaged in rare earth polishing powder business, because there is no quota , its exports have been restricted. In addition , rare earth polishing powder itself is deep-processing products, due to the dominant element cerium , often in the name of export export cerium oxide , greatly reducing the original value of polishing powder .

He told reporters , compared with the heavy rare earths , whether domestic light rare earth reserves and production are large, the economic value and strategic significance is not large, even if the restrictions on exports , it will not cause too much impact .

Chia worry that the current spike after the rare earth market , the price bubble has gradually squeezed out , if companies are trying to export , will further depress export prices , making the company even less money.

Some industry analysts said , is not canceled prior to export quotas , international customers are purchasing domestic downstream processing of rare earth products , these products are processed in the domestic finished re-export , no export restrictions , but once the restrictions on exports , foreign downstream customers there may be a direct purchase of rare earth , which could have an impact on China 's rare earth production downstream processing enterprises .

And for those with heavy rare earth -based enterprises, liberalized quotas, which not only means that there is no exit "system protection " , but also caused huge loss of scarce resources. "There is a quota of big business is very frustrating , like some companies , when tight supply and demand of rare earth in 2011 , with a quota of 300,000 tonne can increase if the quotas , this advantage may be gone. " Baotou Rare Earth aforementioned corporate executives said.

It is noteworthy that , although the Chinese rare earth export quotas have been implemented , but it is still oversupply . The annual export quota used up , even with the amount of smuggling , estimates nor more than fifty thousand tons , while domestic production is far more than that.

The analysts believe that the short-term point of view , export quotas will not completely let go , even if the release is the first lighter rare start , will not have much impact on the rare earth industry .


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