US media: China needs to reduce the impact on the economy of rare earth

According to the United States, "Wall Street Journal" reported on January 5, China officially canceled the implementation of a decade of rare earth export quota management. This system had limited the export of rare earth resources in this strategy, led to trade disputes worldwide and led to a number of countries had to reduce its dependence on Chinese rare earth supply.

The policy change was mainly due to China's rare earth case previously lost. "Policy change, probably because of pressure from China to withstand WTO ruling," Blue Oak Capital (North Square Blue Oak) analyst Frank? Tang said, "China statement said, as a WTO member, must comply with WTO regulations."

Chinese government officials said, from a macro perspective, China also needs to reduce the impact of economic forces on its exports of rare earths. "The most important factor leading to cancellation of rare earth export quotas China, the Chinese government is gradually emphasize market-oriented." One expert Commerce Department's Economic Research Institute, said the international trade cooperation.

China's rare earth export quota mechanism, once a major event in global trade. In 2010, China drastically reduced the export quotas, an 40% reduction in the previous year, which greatly pushed up the price of rare earth, or once reached 10 times. For the move, then the interpretation of the Chinese side is hoping to rectify the domestic rare earth mining industry and high pollution.

In the face of the move, the Obama administration will be referred to as "a wake-up call." Trade complaints thus ensued. RE has thus become the auto parts, solar panels, as China has become one of its trading partners in recent years caused friction of key projects. In 2012, the United States, European Union, Japan have said that China's use of rare earth export quotas of rare earth supply to push up prices, in violation of the relevant WTO regulations.

However, as countries begin thereafter intends to reduce dependence on Chinese rare earth resources, combined with other exporting countries started to increase the supply of rare earths, China's share of production of rare earths, has been reduced from the previous 93% to around 86% now. In 2012, China rare earth quota restrictions relaxed, and in rare cases after losing the Chinese government officials also say that the continuation of the rare earth quota management days are numbered.

According to the Chinese Ministry of Commerce side said, after the cancellation of rare earth export quotas, China will take management of rare earth export licenses, export contracts related businesses only basis to apply for an export license, without additional approval by the State.

China Rare Earth Industry Association, the person in charge at the time of an interview this week, said that the current authorities are still conducting a study on the specific details of the regulatory system.

Message from the Customs show that the first 11 months of last year, China, the world's second largest economy exported about 24,866 tonnes of rare earth, rare earth export quota of less than 2014 designated 30,611 tonnes limit China's rare earth exports in 2013 of the total, compared with 22,493 tonnes in the year is also lower than the quota of 30,996 tons designated limit.

China's rare earth exports since 2013 started back up, but at the same time, the total global supply of rare earth is still in adequate condition, Customs data show that 11 months of 2014, China's rare earth exports decreased by 33% year on year.


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