China Rare Earth case against "lost" Where?

Recently, foreign media constantly reports, the case against China's rare earth , especially the Western media loud cheers : This is a major victory achieved in the United States, Europe, Japan and in the case of China 's rare earths . Since March 26, 2014 , World Trade Organization (WTO) panel report released ruled export tariffs on Chinese rare earths, tungsten, molybdenum related products taken quota management measures violate WTO regulations. EU Trade Commissioner De Gucht said: "The ruling shows that no country can hoard of rare earth from global markets, and to allow other WTO members to pay . "This means that China Rare preliminary case against the coming few months time there may be appeals . But I believe that the possibility of the case in favor of small, unless there is a miracle .

So why is so dear to America, Europe and rare ? Why China is a big country of rare earth , but not the right to speak , so lost in this case ?

Now we all know , is not only an important rare earth mineral resources , but also has important technological and military strategic significance , it is indispensable for the development of high-tech strategic resources , from smart phones to missile guidance are inseparable from the & ldquo ; industrial vitamins . " Thus , the United States , Japan and Europe so much importance to the rare earth is not unfounded . In recent years, Japan has bought a lot of the earth, not in a hurry to use, but will be kept on the seabed , to respond to future energy required . The United States is second only to China 's second largest rare earth resources in the country , but the United States does not adopt the reservoir , take not only the mining exploration strategy . According to statistics, the United States reserves of 13 million tons of rare earth , accounting for 13% of the world's rare earth reserves , while the output is zero , the necessary resources are mainly imported from China Rare Earth . Over the years, China has accounted for only 23 percent of the world's total reserves of rare earth reserve of 95% of the world supply of rare earth production , not only low prices was like " gold selling price of potatoes ," but due to the low content of mining technology , mining blind , resulting in huge domestic environmental costs. When China began to realize that the problem is serious restrictions of rare earth exports , the United States and Japan are extremely unhappy to find plenty of evidence to prosecute China , and finally as they wish, making China lost in a rare case .

It should be said that China lost quite useless in rare cases, do not lose heart very willing . On the one hand , indeed America, Europe and the leading world trade talks , in its favor ; on the other hand , we may have some problems , so people grabbed the handle.

So, in the end lost the lawsuit China where is it ? I believe that we have for the time being unfair foreign factors aside from the domestic look for reasons , largely following aspects :

First, China does not exercise effective control from the source. In China, for a long period of time due to excessive rare earth business entities , resulting in an oversupply situation , have low prices and can not control pricing between manufacturers, both domestic and foreign prices appear foreign than domestic prices , the formation of the so-called dumping behavior. But in fact , a lot of profits but ceded to others , the result is still cold outside capitalists got benefits .

Second , local governments pursue GDP performance, adopting a " fast flow of water " measures. Since a long time, the performance evaluation of local government officials primarily to measure the level of GDP , but by mid- assessment, making local governments can take " fast flow of water " measures , without considering the costs and environmental pollution control costs. Relatively easy exploitation of rare earth resources , but also to make money, no doubt a " fast flow of water ," the victim.

Third, the production and supply of domestic inconsistent. Though the integration of rare earth resources in China factory , reducing the phenomenon of chaos mining , export restrictions , but did not yield substantial reduction in domestic production of rare earth products are more in domestic supply is greater , while exports less . The problem is that after some domestic manufacturers in domestic prices for rare earth products , hands high sales in the international market . So give a wrong impression abroad , Chinese export restrictions only for the United States and Japan and other foreign capital , it is unfair implicit trade. This is also one of the losing cause.

Fourth, China lacks versed in international trade rules and negotiations senior personnel. If China can be familiar with WTO and other international trade rules , proficient in foreign languages ​​and negotiation skills , then we can also lose less experienced this frustration !

In order to avoid damage suffered major international trade friction brought to China must enhance learning , develop more advanced economic management personnel, especially versed in international trade rules and negotiations of senior personnel , so perhaps in the international negotiations will not ignorant and passive ; change or cancel the current performance evaluation mechanism , to build a long-term evaluation mechanism green ; increase the integration of rare earth resources, improve industrial concentration ; strictly limited domestic rare earth production and consumption , we must ensure that domestic rare earth production in line with the export standards abroad avoid giving others a handle .


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