RE regulatory focus to production processes

Starting this year, China's rare earth export quota management officially canceled. This initiative is not only to deal with the results of WTO rulings, but also to build a more open market economy system active choice. After the quota management canceled, China's rare earth industry regulatory focus will be more from the export sector to domestic production processes.

From January 1 this year, China began to implement a formal cancellation of rare earth export quota management for many years. Enterprises need to take to apply for export contracts to export, no longer provide approval. Along with the elimination of export quota management system as well as bauxite, coke, tungsten and tungsten products, silicon carbide, manganese, molybdenum and fluorspar.

Quota accidental

Export quotas, refers to the government in a period of time or the amount of the export volume of exports of certain provisions of a ceiling. For a long time, China has accounted for only 23 percent of the world's supply of rare earth reserves more than 90 percent of rare earth products to the international market. Some countries also have such products exports of rare earth resources such as long-term zero, but at an affordable price to import large quantities of rare earth resources. RE cheap price and value have been contrary, is known as the "gold selling price of cabbage." Taking into account the resources, environmental protection and other issues, the Chinese government on the mining, production and export of rare earth synchronization of all aspects of the management measures implemented, the implementation of tariff quotas and export management. May 2011, the State Council issued the "Opinions on Promoting sustainable and healthy development of rare earth industry," reiterated the Chinese government through integrated management measures to protect the environment, conserve rare earth resources policy objectives.

March 2012, Europe and other countries and regions once the larger Chinese rare earths, tungsten, the proportion of total global reserves, export restrictions affect the development of related industries by countries to resort to WTO dispute settlement mechanism. March 2014, WTO preliminary ruling of export quotas for rare earths, tungsten, molybdenum and other related products to take, export licenses and export price measures are not consistent with its relevant regulations. Since then our appeal, affirm our policy objective is in line with WTO rules, the WTO in August but still made a final ruling regrettable conclusion, while comprehensive resource and environmental protection measures taken in recognition of China's rare earth determining China's rare earth export policy violations.

Respect the market active choice

"To become a bad thing for a good thing." Professor Chinese Academy of Social Sciences Institute of International Law 黄东黎 said. Some only consider when formulating policies on local traditions and authorities in their fields of interest, lack of our country is already a member of the WTO and the need to comply with WTO rules recognize. And no matter what the policy for consideration under the WTO framework, must be in accordance with the dispute settlement mechanism to resolve trade frictions arise, the losing party must enforce the ruling. In this process, the need to improve the ability to use the rules of the game.

The cancellation of rare earth export quota management is to honor its WTO commitments, is to deal with the results of WTO rulings, but also China to let the market play a decisive role in the allocation of resources, active choice to build a more open market economy. Third Plenary Session of the Party's eighteenth resolution states, focus of the market plays a decisive role in the allocation of resources and better play the role of government, to deepen economic reform.

After the cancellation of rare earth export quotas of rare earth export mainly by market demand to decide. One is to reduce the burden of rare earth export enterprises, enterprises do not need to go for a quota; the second is the compression of space, smuggling and other non-normal exports of rare earth export volume normal channels will be enhanced, industry will be more healthy and orderly development of rare earths.

Many industry insiders believe that this policy change has little effect on the market. Because the international market in recent years has undergone major changes in the pattern of rare earths, the annual quota has not run out. RE current international market downturn, the price of rare earth products has dropped to its lowest point since 2011. Cancel RE quota of market and industry will not happen much impact, long-term price trend is still decided by supply and demand.

On the other hand, since 2013, two rounds of rare earths "hitting" the effectiveness of emerging, illegal exploitation has been checked, the industry has improved production order. Industry consolidation is progressing positively, six rare earth group formed expected to heat up. Related brokerage analysts believe that the rare earth industry has entered the upward inflection point, with the resources tax adjustment, purchasing and storage is expected to heat up, will further push up domestic rare earth prices.

Product development strategy to strengthen the resource

After the quota management canceled, China's rare earth industry regulatory focus will be more from the export sector to domestic production processes. The next step, whether it is for environmental protection, or restructuring, we need to further strengthen the exploitation of rare earth and other resource products, production, processing and utilization management. From a practical perspective, the development strategy of resource products need to be strengthened.

Deputy Director of the Ministry of rare earth do 史瑞庭 at the recently held China Science and Technology Forum, the future of rare earth industry through continuous improvement management mechanism to increase the implementation of national policies, implementation and enforcement, protect the country's valuable strategic resource, so that the rare earth industry to embark healthy, orderly and sustainable development.

In addition, rare earth deep processing and industrial upgrading is the future direction of the rare earth industry. "Rare earth materials is the development of high-tech and cutting-edge technology indispensable defense of key raw materials, high-performance, high purity and develop new applications of rare earth materials development trend." Chinese Academy of Engineering, Chinese Society of Rare Earths, chairman Gan Yong said. He suggested that the high-end of China's rare earth products is heavily dependent on imports, the future must focus on the development of key technologies, develop a new generation of low-cost and stable batch of rare earth materials and preparation techniques, meet other intelligent control and detection of high-end applications.

East China University Professor Lu Guanzhong also said that the current rare earth catalytic materials or catalytically active component, has been widely used in chemical, petroleum autocatalyst and forward air purification, catalytic combustion, energy and chemical industry extends. The next step should be to make the rare earth catalytic materials play a greater role in environmental management and development of new energy and other fields.


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