"Second Rare Wars" China uncompromising

According to South Korean reports, China ranks rare earth market dominance, the United States, Europe and other Western countries to contain them again, China and Western countries launched a "second war of rare earth."

Reported that the Chinese monopoly of rare earth market, from 2009 to 2010 has erupted over the "first war." China stopped exports to Japan of rare earth. Japan is highly dependent on Chinese rare earth in order to get called "cutting-edge industries vitamin" rare earths, had the flag to surrender. At that time the demand for smart phones on the global IT market soared, demand for rare earth necessary for the production of smart phones have increased, but China is to "protect resources" to restrict the export of rare earth, rare earth export prices leading to instantly improve 4,5 times. Foreign IT companies to buy rare earth prices up more than 3 times of Chinese enterprises. China was in the rare position of absolute dominance of supply and demand in the field, the first Chinese to win rare World War.

But China wants to see a long-term limit exports of rare earths, the Western countries in June 2012 to the WTO against China. WTO dispute settlement committee to review after two years to make rulings in favor of the West: "China's rare earth export restrictions are measures favor domestic industries, which is improper behavior. "According to the analysis, although China plans to appeal, but the possibility is unlikely to overturn the ruling, but the adverse external environment for China.

In addition, the United States and other Western countries have learned over China stopped exports of rare earths, have developed a self-help countermeasures. In the past due to environmental pollution and other reasons not actively producing rare earths United States, Australia, Russia and other countries have started mining of rare earth. And foreign companies are still only a small amount of rare earth will be able to speed up the development pace to achieve similar performance of the technology. Molycorp has to ensure that only the United States with over half of the rare earths can maintain a strong magnetic technology.

The article said that China does not intend to give up the rare earth "hegemony." May this year to participate in relevant meetings of the rare earth resource tax China official said: "In view of the scarcity of resources, the environmental costs of mining, rare earth resources should raise taxes, raise the market price of rare earths to respond due to WTO against China's rare earth caused by slack management The negative effects. "If the Chinese raise resource tax, forcing Chinese companies to reduce the supply of rare earths, the rare earth prices in the international market stopped falling or rebound. The current standards for the rare earth resource tax levied 30-60 yuan per ton. In addition, China is also to promote six large enterprises as the core of the churning up of rare earth enterprise integration. The intention is to strengthen the government's management of rare earth enterprises, so as to prevent smuggling and to control production and prices.

Many analysts said the "rare earth war" China and the United States and other Western countries will continue, China will not easily give up the power of rare earths. The United States, Europe and other countries to prevent the Chinese rare earth used as a weapon and form a common front, trying to find alternative to Chinese rare earths various means.


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