Chinese rare earth export quotas or forced termination: the final judgment results and other WTO

If the WTO continues to consider our practices and inconsistent with WTO rules , which means that our country since 1998 rare earth export quota system will be forced to end.

Rare WTO dispute against China triggered a chain reaction.

March 26 , World Trade Organization (WTO) ruled that China's export management measures rare earth, tungsten, molybdenum related products violations. Less than a month , on April 17 , China had submitted relevant documents to appeal WTO Appellate Body , the WTO panel ruling to overturn part of the report . But before China , the United States was first appeal on April 8 .

This rare trade dispute "tug of war " you come back to me is the game of interest between countries . Accompanying , of rare earth export quota system implemented since 1998 or will be forced to end the rare earth industry will also face a series of policy adjustments .

US cross- appeal within one month

March 26 , WTO announced the United States, European Union, Japan v. China rare earths , tungsten, molybdenum export management measures related to the case of the panel report : China's ruling export management products involved violations. May 9 , the reporter learned from the Ministry of Commerce , China, as the responding party to the WTO 's Appellate Body has (Appellate Body) submitted the appeal papers on April 17 . Interestingly, the appeal before China , the United States was on its complaint Chinese rare earths, tungsten, molybdenum WTO Dispute related export management measures , the WTO Appellate Body first proposed the appeal on April 8 .

United States filed an appeal before the Chinese catch appeal , this unconventional approach in China Rare Earth Industry Association Deputy Secretary-General Chen Zhanheng appears that the United States was convinced that China will probably only appeal ahead of an appeal. " According to U.S. media reports, they will follow if China Appeals to appeal . Doing nothing more than to Dingsi the case , is to make China the abolition of quotas and export tariffs on certain rare earths . "

Rare has " industrial vitamins " reputation, 17 kinds of rare earth elements are usually divided into two groups of light rare earths and heavy rare earth , rare earth elements is very different from the price difference between the price of a tonne tens of thousands to millions of dollars. Today, high-tech industry as an essential raw material , has become an extremely important strategic resource. This is why many countries and regions the United States, Europe, Japan and other so concerned about the problem of rare earth export quotas and tariffs of the important reasons.

It is learned that the appeal documents submitted by the Chinese side is mainly for WTO panel report more than 170 passages raised objections that the report misinterpreted the WTO rules and China's WTO accession documents, and then asked the Appellate Body rejected the panel report concerning China's " export quotas "illegal and so ruled .

The rare case of a WTO panel has three members , the Commerce Department of Treaty and Law Secretary Li Chenggang introduced , resulting in three panelists , usually by the time the parties involved in the recommendation , if unsuccessful would recommend specified by the Director General of the WTO, "So the members of each case is different. Expert Group under the WTO agreements related to the interpretation of these rules is to give an overall opinion. "

Currently, the Chinese have to do is wait for the outcome of the appeal . If the result is determined to continue our practice of WTO and WTO rules do not match , which means that our country since 1998 rare earth export quota system will be forced to end , rare earth -related policies will also be adjusted.

China to abolish the quota system and unfavorable foreign enterprises

Rare earth export quota system is to regulate the country 's rare earth export policy order enacted . At present, China 's rare earth export quota system implemented for the year , namely a limited system of export enterprises shall not exceed the annual export volume of rare earth has a number of its quota.

This system came from that day , and restrictions on exports of low value-added rare earth products , the adjustment of product structure of exports of rare earth , promote the formation of China's rare earth industry chain and so played a positive role . Today, the quota system is still the most effective method of controlling the total rare earth exports.

If an appeal after losing the Chinese again , Deputy Secretary-General Chen Zhanheng China Rare Earth Industry Association , said, " affect us . " But he also stressed that the move will not be conducive to foreign companies.

" quotas bigger impact on foreign countries, because the United States and Australia are producing rare earth quotas and tariffs if canceled , the base price in the international market will be down, the international rare earth industry will face more severe competition. " Chen Zhanheng said .

Integration formed six Rare Earth Group actively respond

If the China appeals WTO dispute again lost, or Forced Chinese rare earth policies to accelerate transformation. Founded six years and Logistics Group Rare Earth Rare compression capacity , became one important response measures .

Enterprise scale , intensive development is the trend, according to informed sources , China's rare earth industry this year is said to compress 100,000 tons of production capacity .

China in recent round of rare earth enterprise integration began in 2009 , a substantial tightening of rare earth export quotas become integrated signal outgoing rulers . In 2010, China's annual quota of rare earth export total was only 30,258 tons in 2009, a decrease of nearly 40% , while in the previous five years , the annual amount of rare earth export quotas for the year did not exceed 10% decrement .

Under the United States, Europe , Japan and many countries encirclement, China's rare earth industry consolidation progress was accelerated.

May 2011 , the State Council issued the " Opinions on Promoting the sustainable and healthy development of rare earth industry ," and proposed the formation of large-scale enterprises basically dominated the pattern of the rare earth industry .

It is reported that in January of this year , led by the Ministry to develop a large group of rare earth program has been established by the State Council approved the agreement . Program finalized six rare earth group pattern.

This is a latecomer in the State Department "Several Opinions on Promoting the sustainable and healthy development of rare earth industry ," for three years, substantial progress in the restructuring of the rare earth industry .

Industry insiders believe that the formation of a large group of rare earth solutions to help change the current chaos of rare earth export industry , which will help solve the problem , including rare earth mining , smelting process polluting rare earth industry is currently facing .

Needless to say, after the integration of a large group of rare earth , rare earth industry, the next series of policies , including production quotas, mandatory plan , the new mining permits , etc., generally large group of rare earth will tilt . Rare earth industry will usher in a new round of reshuffle.

The latest news is that the current State Reserve Bureau has signed agreements with six rare earth rare earth group purchasing and storage . In addition , the National Committee of Standards and Technology rare recently held a meeting to discuss and validation of the " rare earth grades representation " and 18 rare earth industry standards. Baotou Steel Rare Earth and Rare hospital subordinate units , International Trade Company , and the United States company , involved in the development of hydrogen storage company which led a number of criteria .


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