Rare lose anyway, source management waits for no man

With the preliminary results of the US-Japan EU lawsuit against China's rare earth export quota management measures instituted other related products, World Trade Organization (WTO) ruled against China. In accordance with rules of the World Trade Organization if China is no longer appeal or final results remain unchanged, China will have to abolish export duties, export quotas and other management measures.

Since China adopted to raise export tariffs, reducing export quotas and raising the minimum export price of three restrictive means obviously not in conformity with WTO rules, the results of this trade dispute has long been expected to insiders, the corporate level have taken measures in advance with a digest of the ruling to adverse effects. Little hope in the case of a successful appeal, how to deal with before becoming China's rare earth industry is imperative to improve the resource tax, strengthen the management of production processes is currently perhaps the most effective measures.

Insiders, plaguing China's rare earth industry has two "troubles." First, China's rare earth industry chain is very short, the real high value-added chain is the end product, but the level of deep processing varies greatly, which is still rare in China to sell primary products, which in turn also to thousands of times the price from Foreign buying deep-processing products. Assistant President of China Minmetals Mr Wang's remarks earlier interview, revealed the rare earth deep processing industry in the field of short board: "The dollar's rare earth materials, we roughing up to sell 10 yuan, 20 yuan, to the U.S. and Europe made products We must spend 1,000 yuan to buy back. "

Another "bothering" is caused by a duplication of serious excess capacity. China's rare earth processing enterprises concentrated in NdFeB, luminescent materials and NiMH batteries three industries, high-tech industries rarely dabbled in other applications. Rare earth deep processing industry homogeneity, not only severely restricts the development of rare-earth applications, a large number of investment projects also contributed to the same overcapacity is serious.

2014, the State Council approved the formation of a national group of large rare earth "1 +5" work program, specifically Northern Steel (Group) Corporation, China Minmetals, Chinalco, Ganzhou Rare Earth, rare earths and Guangdong, respectively, led to further promote mergers Xiamen Tungsten reorganization, the formation of large rare earth enterprise groups. This six companies will be spliced ​​into the new map of China Rare Earth, in the long run, the rare earth industry is facing overcapacity and field processing applications is expected to gradually ease the difficulties faced.

But in the short term, the entire rare earth industry, in addition to the regular production, there is a big part of selfishness mine, a Baotou Rare Earth corporate executives said. And because the primary products subject to quota restrictions, some countries began to take up plants in China in the guise of resource exports. To strengthen the management of production processes is particularly important. Some netizens suggested that the United States can learn from the experience, name of environmental protection, a substantial increase of rare earth resources tax, increase production costs and the cost of rare earth exports to Europe and the United States were flat, after the world's rare earth market balance, Europe and Japan will not then forced China to sell rare earths.


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