China dummy eat Coptis chinensis in rare earth dispute

World Trade Organization (WTO) ruling in China and the United States , the European Union (EU) and rare earth exports to Japan in a dispute against asking China to eliminate export restrictions on rare earths , which is considered a major victory for the developed economies of China made ​​.

It should be said that this is lost once expected, United States and Europe in 2012 to formally propose the WTO complaint . But as early as the summer of 2009 , when the European Union, the United States and Mexico has the raw materials to China 's export restrictions on WTO policy report , cited by the three parties involved in raw material bauxite, coke, fluorspar , magnesium, manganese, ferrosilicon, silicon carbon , phosphorus and zinc nine kinds .年初2012, WTO Dispute Settlement Body determined that Chinese restrictions on the export of raw materials do not meet China's WTO accession commitments and the relevant WTO rules. But the industry generally believe that action against these nine kinds of products, but it is just testing the waters , the real goal of the developed economies in fact intended to rare earths.

WTO opened a very important precedent , according to the impact of this ruling on rare earths surface involved , it can be said that China's accession to WTO, the biggest defeat suffered 10 years .

Of course , this can not be protracted dispute with the ruling Rare 26th settled. In accordance with WTO rules , the Chinese side can appeal within 60 days. From the position of the Chinese Ministry of Commerce, the first time - expressed "regret " and said the report is an assessment of the award - point of view, the appeal is inevitable, although the outlook is not optimistic.

China " Rare war " with a long history of Western developed countries , mainly due to dissatisfaction with China in recent years, the latter decreasing exports of rare earths . The dispute sudden warming since the second half of 2010.

In early September 2010 to coincide with the Day " Diaoyu Islands collision " , while Japan is not only the world's biggest importer of rare earths , and its imports almost all from China ( Japan is the second country in the world rare earth consumption , imports nearly 20 percent of global rare earth ) , many a time the Western media have speculation, " China is trying to control exports of rare earths to achieve political objectives ." By the end of October 2011 , the then U.S. Secretary of State Hillary Clinton publicly urged • United States and its allies to reduce dependence on China 's rare earth production , but also called it " a wake- up call for us ," senior officials in Western countries may be published on this issue the most forthright speech, but also to the dispute over rare earth onto a climax.

In order to eliminate fears and misconceptions of the whole world , in the past few years, from former Chinese Premier Wen Jiabao , the current Premier Li Keqiang to the heads of the relevant departments of the State Council , China had repeatedly expressed do not prohibit or restrict exports of rare earths mean , the Chinese side also repeatedly urged countries not to politicize the issue of rare earth trade .

So why exactly is so rare it affects people ? Because of its importance is evident.

Rare is lanthanum, gadolinium and other 17 kinds of special metallic elements collectively , they have a strong magnetic force , or , or can enhance the ability of the metal temperature . These elements are widely used in all industrial fields, especially critical for the current very popular new energy and other high-tech products. Thus it was that , if not rare , most of the modern economy will stop functioning .

Almost all of China's current monopoly of the world 's rare earth supply - the supply of more than 90% of global rare earth production , of course, he is consumed more than half of the world's rare earths . So , 20 years ago, Deng Xiaoping once said this: "The Middle East has oil , China has rare earths. " It is said that the slogan was carved in the world's largest rare earth producer - on the walls of the high-tech Co., Ltd., Baotou Steel Rare Earth .

However , it is worth noting that the name "rare earth " , it is actually not rare, everywhere around the world is rich in rare earth minerals , China 's rare earth reserves only account for less than 40% of the world's total reserves . Therefore, other countries are much too scarce rare earth , as it is too costly and difficult because of mining or unwilling to produce .

Leaving aside the Westerners in China " politically motivated ," the unfounded speculation in recent years, Chinese government restrictions on exports of rare earths mainly based on the consideration of the following aspects : First, the rare earth mining and processing can cause serious air , surface water, soil and other aspects of environmental pollution , is typical of high pollution , high energy consumption, consumption of resources industries ; second , in 2010 10 years before rare oversupply in the international market , Chinese manufacturers have no pricing initiative , the price all the way down , there has been the so-called "gold selling cabbage price " situation ; third, because China itself is the world's largest rare earth consumed before, according to the current production rate, there were reports that China 's medium and heavy rare earth reserves only last category 15-20 years may eventually need to import themselves ; fourth, China also hopes to encourage foreign enterprises to users of rare earth enterprises and relocation of production facilities to China, and not sell cheap raw materials from abroad , which is rare for the province of Inner Mongolia, economic growth and employment are extremely important in promoting tax and even promote the entire Chinese manufacturing upgrades.

It should be said , and both these demands is reasonable , so in recent years, China 's domestic rare earth mining and trade imposed strict controls . In this sense alone says , WTO ruling against China is very unfair , because no country is obliged to sacrifice their own interests to the benefit of the other countries of the world , which is China down a ruling on the above reasons to feel particularly aggrieved .

However , on the other hand , we must also see that the Chinese government in order to safeguard their legitimate interests , but it took a lot of very wrong means. I think , in large part , this is trapped in his own people inside and outside the crux of embarrassment . Since 2008 , China 's management of rare earths are mainly taken the following policy -

First ( and most important ) , issued from 2010 rare earth export licenses and quotas are almost declining.

Followed by the implementation of the restructuring of shutting down a large number of so-called " scattered, chaotic , small" mines, trying to integrate the country's rare earth production for the northern and southern two miners and processors of the Commonwealth , and the establishment is called Rare Edition " CISA " has a huge administrative powers China Rare Earth industry Association . Currently , the North 's integration has been completed, basically all the focus to the Inner Mongolia Baotou Steel Rare Earth there ; case the South is relatively complex, and so are actively planning for the integration of Minmetals cause. Here Incidentally, China 's rare earth reserves , mainly in the northern Inner Mongolia, while the South is relatively scattered , and Jiangxi provinces reserves are more plentiful .

Third, and this is closely related to the establishment of so-called rare earth reserve system , and the first batch of 11 designated national planning mines , industry access conditions set by the government and approved by miners .

Fourth, improve the export tariffs on rare earth and rare earth resources tax.

We mention some of these policies - such as export quotas and tariff increases - are likely to conflict with WTO rules , even without considering the external factors only to promote the healthy development of the industry and market this goal theory, these policies are mostly more harm than good for .

For example, the limitation and reduction of export quotas , on the one hand to promote the international market soaring prices of rare earth ( RE part of the price rise in the past two or three years of up to 500 %, which is the source of discontent European countries ) , on the other hand , due to the country 's production did not fall, resulting in even greater disparity between the inner and outer post . The end result is two-fold: First, export prices rose quota itself ; According to state regulations , transfer and trading of export license is illegal , but the fact that the market has not only exist, but in recent years become increasingly popular. According to reports, in 2011 , the market price of one ton of rare earth export licenses , has grown from a few thousand dollars a few years ago rose to 40-50 million, which almost makes export licenses worth over rare earth minerals itself ! The second is greatly stimulated the smuggling of rare earth . Authorities estimate that in 2010 the country may have been smuggled out of the country more than 30,000 tons of rare earth !

Greater harm these policies also that we can see at a glance that they are by the executive power ultimately will have a market which is already a prototype ( although it may be more chaos ) of Chinese rare earth mining , processing and export monopolies in a few large state-owned enterprises ( or even central enterprises ) hands. This is much like the last century, the so-called "oil industry consolidation " in the 1990s . But years of experience have taught us , there is a state-owned enterprise administrative monopoly , is one of the biggest obstacles to China to further promote the market-oriented reforms.

And, to say the least , expect them to protect the environment and achieve technological advances are likely just fantasy. This is because , in the final analysis they themselves are not really producers , like other administrative monopoly central enterprises - the most typical is the infrastructure construction business - like the real " work " of the people is that they subcontracting companies , that is, or those scattered, chaotic , small private enterprises, state-owned monopoly , but is likely to be some of the government 's restrictive policies ( including access cards , licenses , etc. many private businesses can not insurmountable sturdy barriers ) support with the " rentier " only !

Can really protect the national interests of the proper focus of rare earth policy should be guided by laws and policies , to find ways to raise the cost of production of rare earth in China , so that market forces will spontaneously reduce its supply and export . The so-called raise costs , is to develop a higher threshold environmental requirements and local environmental pollution compensation ( such as sewage costs, etc. ) of rare earth production , while requiring companies to vigorously enhance the safety and treatment standards of corporate employees. This is fully consistent with the WTO agreements. In the judgment of 26 May , WTO did not recognize China for the protection of resources and the environment and to limit exports of rare earths proposition. In fact , it is not opposed to China 's environmental protection efforts , but that can not be in violation of WTO law to policy measures to promote environmental protection . In fact, as we have already seen . These policies are not necessarily able to achieve environmental policy in mind.

For a long time , China 's rare earth why sell so cheap is because the production of external costs ( such as environmental pollution ) it produces shared by the whole society , as long as the policy of this country through the rational part of the external costs appropriately translated into economic costs allow enterprises to bear alone , do not need to worry rare resale price Huang ? On the other hand , the so-called competitive enterprises bigger and stronger so that , nor is issued by the state-owned monopoly mining license will be able to do. On the contrary , it should equally be encouraged enterprises of different ownership fully competitive , free market rules by mergers and acquisitions . Thus , over time , efficient , high- level corporate management will naturally eliminate those inefficient enterprises.

And now we do not start from the root up , but part of the external costs of trying to put together , converted to reap the profits of the few state-owned monopoly , is it wishful thinking ?

In summary, China, the United States and Europe Day "rare earth dispute " with China and Australia , Brazil and other countries , " iron ore dispute " in nature is the same, although one is exported , and the other is imported . "Gold selling cabbage price" when China's exports of rare earth and " cabbage price to buy gold ," Chinese imports of iron ore when the facts are irrefutable , we are indeed at a disadvantage . However, in order to solve this problem , the Chinese regulatory authorities always involuntarily plan to regain control of the economic and administrative old ways , trying to cancel the competition in the domestic market ( it think that this " disorder " is causing us to lose the competition reasons ) , the establishment of administrative monopoly called " a hole " ( almost always state-owned enterprises ) unified external , to improve our voice in the international market . But the practice for decades has repeatedly proven that this approach runs counter to the market economy not only makes us Have ineffable sorrows, people inside and outside , but is actually impossible to achieve the desired goals of these policies are implemented , but the only result domestic monopoly interest groups provide fertile soil unearned only.


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