Cautious response to rare earth trade loses

WTO announced the United States, European Union, Japan against China rare earth, tungsten, molybdenum export management measures related to the case of the panel report , ruled that the export control measures Chinese products involved violations. This means that China 's export quota management system over the years , or will be forced to cancel.

In accordance with World Trade Organization (WTO) regulations , as well as 60 days to appeal the case of time , the Appellate Body to make a decision within three months. Thus , China has had time to respond to follow-up .

The case is not good news for China , some people worried that after the rare earth export quotas , Chinese rare earth companies will compete to reproduce cachexia , rare earth prices become " loess price ." This is the United States and Europe and other markets want to see the picture.

In fact , as long as the rare earth prices in line with market rules, China is not specifically on the rare earth export quota system realization . But misreading of the international community , United States and Europe market trading habits of rare earth elements outside of reading too much . They monopoly grounds of China 's rare earth resources , especially from heavy rare earth resources indispensable technology in the aerospace industry in the way , the Chinese rare earth export quota system restricting his country considered China a strategic tool .

These , aired in the United States political drama " house of cards " in the second quarter , most vividly , Chinese businessmen and trade rare U.S. capital oligarchy to become the White House , " one , two" infighting in the main line. In addition, Japan's rare earth export quota system , but also anxiety , and even massive undersea discovery of rare earth mine, China carried out falsehoods media war .

China to protect its rare earth resources, even as a means of safeguarding the interests of , there is no reason . In the United States , its rich oil and gas resources are not long-term development, and more than willing to wage war in order to maintain strategic dominance in the Middle East , in the United States to maintain sufficient to explain their position as a global power in the political, economic , diplomatic and resources other aspects of the budget-conscious . China to protect its rare earth resources, and is under the framework of the WTO safeguard national interests through normal trade means , of course, no problem.

Realism in international relations , whether political or diplomatic and trade relations and interests of the game in prime position. In the interest of maximizing competition, if the political and diplomatic depend on the overall strength of the competition ; trade war will depend on the skill game WTO rules , as a new member of the WTO, the face of United States and Europe and other trade veteran , China is clearly not as good as they navigate .

As a trading nation, China and the United States and Europe frequently these years other countries in the WTO blows , accumulated experience in the trade war . For China, the victory has become standard issue . Hardships for the worst , Chinese growth in goods trade war in the first trading nation ; services in order to become the first trading power , the future of trade against the respondent still a long way .

Discuss the case against China Rare Earth , only to be relieved and have faith. First, China 's rare earth export quotas have played a role in the market and outside bar drinking . Externally, a burst of panic and prosecute international market proved reserves of rare earth big country as China trade power in the global trade. Internally, prompting those rare extensive low-end business transformation and upgrading , making the country along the path of development and orderly regulation . Secondly , fit the national strategy Chinese ecological civilization , the deterioration in the rare earth industry to compete under the chaos like , not only export prices infighting so that foreign profits , and indiscriminate digging , but also cause high energy consumption, high pollution and overcapacity , which is China moment typically need governance "industrial disease ." Chinese rare earth export quotas for foreign trade environment seems essentially internal spawned industry consolidation , and to some extent, protect the rare earth resources, conservation of the natural environment.

Even if the West does not appeal , China's rare earth export quota system also completed a mission. According to statistics, in 2013 China's rare earth export quota is 24,000 tons , 23,000 tons less than the actual exports , exports only amount to $ 603 million . The biggest problem of China's rare earth industry is a multi- stock , supply and demand imbalance in the market , prices fell bigger. If the increase in exports with the United States and Europe may be able to digest part of the day the stock market , so that the bad living conditions can be a little bit angry rare earth industry . Other than the need to save the domestic market surplus , perhaps China wins against alternative harvest the fruit .

China appeals may not be the best choice. It is important for China to keep China's important rare earth resources, through industry consolidation , technology updates and tax initiatives to make extensive , disorder , intensive production of rare earth industry waste , improve resource utilization and market competitiveness. Under the premise of ensuring national strategic needs , the formation of a unified foreign pricing, to achieve the highest export profits. Be noted that greater efforts to combat the smuggling of rare earth , rare earth blocking the inflow of illegal cheap foreign markets loopholes more urgent.


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