China WTO rare earth dispute case on appeal the likelihood of success of the small

World Trade Organization (WTO) panel report released in late March about Chinese exports of rare earths dispute , ruled export tariffs on Chinese rare earths, tungsten, molybdenum related products taken quota management measures violate WTO regulations. April 25 , China's appeal documents submitted direction as the respondent WTO Appellate Body (Appellate Body).

Despite appeals express our attitude and position on the case , but insiders said " the likelihood of a successful appeal of the Chinese side is very small ," but behind this trade dispute "tug of war " , and has exposed a deeper maybe the problem is more worthy of our reflection.

"As a high-tech industry essential raw materials , rare earth has ' industrial vitamins ' said. " Deputy Secretary-General of China Rare Earth Society陈占恒in an interview with Technology Daily Reporter interview , said," This is why a number of countries and regions in the United States, Europe, Japan and other so concerned about the problem of rare earth export quotas and tariffs . "

According to Chen Zhanheng introduction , rare earth is widely used in wind power, electric cars, computers , smart phones , aerospace, defense industry and other manufacturing . Our country is currently the world 's largest rare earth refining , processing and exporting countries . " Prior to this , the United States is the world's largest supplier of rare earths , accounting for over 50 % of the world , such a state until 2002 . 1990s , China began mining rare earths. A few years ago China's rare earth supply was 95% -97 % of global supply, has declined in recent years , because now other countries are also produced . "He said," When the United States declared in 2002 because of environmental and pollution problems turn off the rare earth production , but in fact, there is a very important reason , and China is its rare earth prices are not competitive compared to our prices too cheap . "

This period was the oversupply of China's rare earth market , many investors blindly flock of rare earth industry , resulting in domestic and international market situation was the emergence of low-cost sales . "We must strengthen control of the front scale mining , metallurgy strictly prohibited investment into the separation , including new materials , because these areas have varying degrees of overcapacity. But also increase the ecological restoration , pollution control efforts . " Chen Zhanheng said.

Cause of China's rare earth prices was "too cheap" , was developed because of China 's own intellectual property rights of "rare earth smelting and separation technology " significantly improves the rare earth smelting separation efficiency. "This technology was born in the 1980s, although the technology itself is a good thing , but at that time our patent awareness has not been so strong, and there is no transfer of intellectual property protection everywhere , technicians learn and to go elsewhere factories, technically There is no limit , causing overcapacity . " Chen Zhanheng said," a sophisticated material , and it was sold into ' cabbage price ', so not only domestic , but also affected the foreign rare earth market . "

" Since 2010 , rare earth prices gradually rise, U.S. companies feel that there is room for profit , of course, there are the strategic needs of the United States itself rare , so rare earth production resumed . " Chen Zhanheng said.

He told reporters: " China began to implement a quota policy in 1999 is to regulate the export of rare earth products of domestic enterprises order, rather than to restrict exports , because we give a quota has been higher than the actual volume of exports has never run before. "In the rare case of a dispute , the Commerce Department also made ​​it clear that : For the Panel finds that China's export duties involved in the product, export quotas and export quota management and allocation measures are inconsistent with WTO rules and China's commitments on joining the WTO , China was sorry.

China believes that under increasingly severe pressure on resources and the environment , the Chinese government in recent years to strengthen and improve the high pollution, high energy consumption of the integrated management of resource products , "These management measures in line with WTO advocates sustainable development goals & rdquo ; .

In addition to the problems of the industry itself , the level of international negotiations and legal construction of China 's rare earth dispute case also exposed the short board . According to the mandatory provisions of WTO rules , WTO member states governments and their administrative actions bound to accept the norms and rules of the WTO , and through the Trade Policy Review Mechanism and accept the strict supervision of the dispute settlement mechanism of the WTO and its members . "So , the WTO requires improve our administrative law system , the rule of law requires the government administration , government affairs public, administrative procedures. The development and improvement of administrative law to join WTO with China is closely related to the ability to obtain the desired effect . " relevant sector experts told reporters , " Since China's WTO accession , we have been standardized and improve their own legal system, this dispute has also exposed the case of international trade rules we use short board , these are the places we need to make up . "

In this regard, China WTO Research Association has publicly said He Weiwen , a few years ago to a rare dispute he had expected would happen . He said: " We set up rare earth export quotas and export taxes in order to protect resources and the environment , this is still compliant . But the problem is in the domestic market is not similar to the consumption of rare earth products and prices sophisticated management practices, thus creating inequality both inside and outside . "


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