A rare case of losing and Naga Ichi

Along with China become the world 's largest trading nation , we have encountered in the international market by the trade friction in previous years mainly in the "access" part gradually expanded to the "quasi- out " link. March 27 , WTO confirmed that China's rare earth export tariffs and inconsistent with China's WTO accession signed by the relevant provisions of the Protocol , the Chinese export quotas on the product concerned does not comply with the rules set " 1994 General Agreement on Tariffs and Trade ." . While there are opportunities for Chinese complaint within 60 days , but on the rare opportunity also exists only in the case comeback " theory ."

On the rare case, since it is basically a foregone conclusion since losing total to eat a cutting wisdom . According to the views of many people in the rare case of " Live and learn " is no doubt that China lost pricing power in the international market , leading to the rare earth in the international market sold more cheap , and ultimately sold the loess rare earth prices . This view seems plausible , but somewhat superficial . In fact , this time losing in the rare case it is precisely within the constraints of the existing international trade rules , we compete for rare earth pricing efforts suffered a strong blocking EU, U.S. , Japan and other trading partners.

Some might say , why let China accounts for about 23 percent of the world's reserves of rare earths to supply 90% of the international market . Who is not? And what can it tell us? In today's international division of labor , which the State only for the domestic industry producing ? America is not the case , at least the production of Boeing aircraft sold to American Airlines just right . Apple phone is there worldwide. China is more than this , from shoes, clothing , household appliances, to steel, photovoltaic, many industries are inseparable from the international market. So, take the ratio of reserves described can not explain the gap between supply ratio problem . At least, in the rare case of failure to appeal , " Live and learn ," the focus is not on here. However , for a point of view, as a non-renewable resource commodities , development and utilization of rare earth resources, not only to emphasize sustainability, but also pay attention to the over-exploitation of rare earth resources caused damage to the ecological environment . For this reason , in recent years the Chinese government has taken a series of measures to strengthen the management of rare earth exports , including a quota system introduced from 2003 for rare earth exports starting in 2005 abolished the rare earth export tax rebates, the compression in 2005 export quotas business places , from November 1, 2006 rare earth export tariffs imposed .

It stands to reason , to protect the ecological environment and appropriate restrictions on exports of rare earths of the blame . Although the WTO prohibits export restrictions , but there are also for the conservation of exhaustible natural resources exceptions . However , the WTO believes that the conservation of exhaustible natural resources and limitations of such measures in the domestic production or consumption with the implementation , it is not in violation of WTO rules, and China in the limit "quasi- out ", but did not carry out the domestic the same restrictions. In fact , this is precisely China 's " soft underbelly ." In the extensive mode of economic development , the domestic rare earth resources for use efficiency is not high . If the peer set limits not only the domestic rare earth industry to seek a way out of a problem, but domestic pressure downstream industries are too large.

To be honest, though we be modest restrictions on exports of rare earths , but did not take the jammed supply the international market. In fact, China 's rare earth export quota of 80% of the amount in accordance with the design of the world , and rare earth export quotas in recent years have not been exhausted . So why Europe and America should do this complain to the WTO ? Obviously , that is, to the " loess price" buy rare earths. In fact, the 2010 rare earth export quota cuts largely contribute to the achievement of China's rare earth export prices bottoming out of . Since July 2010 , China's rare earth prices began to rise, which in early 2012 the average rose more than 200%. However, we knew that, but it can not effectively defend their rights under existing international trade rules . If in the rare case of losing the issue , " Live and learn ," then this " cutting " is that we do reasonably been arbitrarily considered substandard WTO 's " regulation ."

For rare cases lost, we in the " Live and learn ", the only " wit " is not enough , the need in many respects "long wisdom ."

On the one hand , the demands from our inner terms should not be used as the only means of limiting exports of rare earths . For some places , the rare earth mining in large part to bring jobs and tax revenue. If substantially reduce the size of the rare earth mining , the subsequent impact can not be ignored , such as local economic development will not be a drag ? There is no substitute for the rare earth mining industry ? How to properly relocated labor ? Clearly, the country with various departments also need to come up with a similar problem practical package solution . For example , in the mining areas of compressive scale mining of rare earth related downstream industries brought . Again , starting from the perspective of a comprehensive governance , to environmental protection, industry access management , develop policies and regulations , industrial restructuring and other aspects of the work to be integrated to build pressure to break impasse RE -sharing system from the supply source. If the rare case against us , " a lesson " , should include at least the "wisdom "

On the other hand , the external demands from our point of view, the relevant WTO rules we still have to abide by , but we have to comply with WTO rules and not just a Chinese thing. In the " quasi- out " link, European countries handicapping example there? So far , the United States not only to maintain the restrictions on exports to China of high-tech products , but do not let the EU's output of high-tech products , on the grounds that these products may be used for military purposes. We export of rare earth resources are a strategic resource , and many high-tech military products are inseparable from the rare earths. For some countries restrict exports of high-tech products , we can consider a " non- bona fide " behavior. That being the case , we are of rare earth exports to those countries that have a say ? In fact, the "quasi- out " case , the WTO is often people do not move, officials do not study . We do not say goodbye to people , and once people tell us that we are not even a bargaining chip . In this respect, still need " a lesson ."


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