I dragged rare beauty was brewing Jedi

Around the " rare earth export policy ," the US-China trade legal battle is heating up . Reporters learned from authoritative sources , in order to expand the fruits of victory , let the Chinese into a passive , the U.S. was submitted to the WTO before the appeal , at the same time , China is also actively preparing for , or appeal will be submitted today .

Geneva time on March 26 , World Trade Organization announced the United States, European Union, Japan v. rare earths, tungsten, molybdenum export management measures related to the case of the panel report China , ruled the Chinese export management products involved violations. In accordance with WTO rules , the panel report released in 60 days , the parties may appeal .

"The recent Ministry of Commerce has several lawyers and industry experts convened open internally , and discuss the possibility of appeal specific strategies . The industry generally believe that the existence of discriminatory ruling panel report , the majority support of the appeal . " an industry source told reporters that while the United States will undoubtedly appeal to some extent makes us somewhat passive. "We must immediately cross appeal , the United States obviously do not want to give us too much time to prepare . "the source told reporters.

Chinese Rare Earth Society insiders told reporters that after losing rare , the association also organized enterprises and experts , the impact of this result might bring to the industry to assess , and the Commerce Department also conducted a number of seminars, prepare responses. China Rare Earth Group , a large senior told reporters on the phone , from a business perspective are most worried about is that in the rare earth bubble burst , the rare earth industry as a whole are relatively sluggish performance of the export situation is very weak, losing once triggered rare earth export controls after the cancellation policy , this signal may lead to rare earth prices continue to fall , so industry worse.

However , a contradictory reality is that Europe and other Western countries Zhexiang counterclaim Chinese export restrictions , but there openly for their own strategic resources closure without mining . Some scholars statistics indicate that there are over 20 countries in the field of energy resources have taken various measures to restrict exports . After a state such as Canada take on timber exports , " domestic needs test " , that is, only in the country, the state sell timber to meet the internal demand will consider exports. Another example is the U.S. natural gas exports to take " an export license approval ," and so on.

To suppress the Chinese rare earth , behind the United States and Europe and other Western countries intent is obvious , the impact of China's resources in order to protect the system. Experts pointed out that the United States and Europe and other Western countries often with the skill to play the rules , even those who are fair rules are often able to successfully twisted , but in accordance with the WTO rules to safeguard their legitimate rights and interests of the original intention of developing countries and regions buckle " violation "hat. In his opinion , in the face of foreign " initiative " of resource products , China also should actively reserve " counter-measures ." The Chinese Rare Earth could regain a bureau ? Chinese Academy of Social Sciences , director of the Institute of International Law International Economic Liu Jingdong , told reporters that the panel report has two debatable. First, with regard to the export tax, the Chinese government can take advantage of GATT ( GATT ) Article 20 ( general exception provisions on environmental protection ) to defend . While China's accession to the WTO Agreement shall not be directly invoked 20 , but only therefore denied China as a member of the basic "self-evident " rights , is not fair. In rare case , the group members have a recognized three Chinese this right , Brazil , Russia and other developing members also expressed approval. Unfortunately, the other two members of the Group inherited the case after nine kinds of raw materials, the view that China is entitled to use 20 .

The second is about the Chinese government export restrictions , despite the support of the Group of Experts recognized China's environmental protection in mind , that the specific measures , such as export quotas are inconsistent with WTO rules . "Some specific points sweeping , and did not accept China's defense. Not because the Chinese side effect appeared less than expected results in the implementation of the measures , the measures would negate itself . It is also unfair to. " Liu Jingdong said.

" China on these issues is still appeals space. " Gong Baihua Fudan University Law School professor also told reporters. He said , WTO dispute settlement mechanism set its " reasoning " mechanism , the parties need to provide evidence by this set of rules , the interpretation of treaties . Of course , we can think of this group of experts in the application of the rules are biased, resulting in " unfair" Objectively, this, we should let the Appellate Body to check possible " unfair ." Another level, regardless of winning or losing the appeal , China has completed the program can return 1-2 years of time and space policy adjustments .

"I personally think we should further safeguard the rights through appeal. " Liu Jingdong said that although the Appellate Body was" just the facts without trial law trial " , the possibility of our turnaround is unlikely, but still have to fight for basic rights through action , indicating that our attitude. He said , WTO unlike domestic case , its significance lies not only in the outcome itself , the panel report is only the first instance , if you do not appeal on behalf of obedience, which is a different point of view , there is a difference .

An industry source pointed out that China should continue to fight. No one can guarantee that a lawsuit lose or win, compared to the result that China, as a responsible trading nation and the Member States involved in the process itself is meaningful , both a right to defend their attitudes , but also to clarify the rules of the multilateral dispute settlement mechanism responsibility of the key issues .

America will again appeal against the first instance , " hunting " , in addition to the case itself proceedings , Liu Jingdong said that the reason why the case against China's rare earth , but also because the domestic management measures did not achieve the intended purpose , will " invited heavy criticism . " Domestic management system should reflect the unity of legislation to coordination between central and local policymakers should fine . Gong Baihua also said that China how to handle the relationship between economic development and environmental protection ; overall interest of the development of local interests and national economic development ; encourage exports and export management issues , which are worthy of reflection .


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If the export duties and export quotas really canceled , Chinese rare earth products , how to maintain the international competitiveness of the market ? How to change the unfavorable situation of rare earth "cabbage price" outlet ? Analysts believe that to solve these problems, the need for further research and development work in improving the purchasing and storage to implement policies to promote the integration of the group simultaneously.

Recently, the U.S. , EU, Japan v. China's rare earth export quotas for trade disputes to let China 's rare earth industry once again feel the impending pressure - in accordance with the rules of the World Trade Organization if China is no longer appeal or final results unchanged China will be the elimination of export taxes , export quotas and other management measures.

For a long time , rare earth deep processing industry in the field of short board is pain in my heart for all enterprises : China claims 90 percent of the global supply of rare earth resources, but the main exports are mostly low value-added semi-finished products , to buy from Europe and other countries back , it is increasing the price of a few hundred deep processing products. If the export duties and export quotas really canceled , Chinese rare earth products , how to maintain the international competitiveness of the market ? How to change the unfavorable situation of rare earth "cabbage price" outlet ?

"cabbage price " come from

"My colored net" Rare researcher Li Qing in an interview with reporters, said the International Business Daily , Chinese exports of rare earth products at low prices and industrial structure scattered, chaotic, not unrelated . "Domestic business concentration is very low , a vicious cycle can lead to price competition brought about by increasingly lower quote . " Li Qing said," In addition, the illegal trade of rare earth still exist on the market , were unable to be resolved from the roots. "

In addition, the structural supply and demand of rare earth industry also increased the degree of rare earth prices " runaway" . Enterprises would demand certain kinds of distribution points where large and over-exploitation , causing other partition surplus.

" Differences rare earth mineral content between the various distribution points are often large. For example, a rare earth mine in the light rare earth lanthanum and cerium serious excess , praseodymium , neodymium and dysprosium there is a big gap. Although a large number of mining praseodymium , neodymium and dysprosium can alleviate to some extent, supply and demand, but the extent of causing a surplus of other rare earth elements to deepen , which dragged down the overall price of rare earths . " Li Qing said.

Investment Advisor in the metallurgical industry researcher Weiqi Ning said that in addition to the lack of a unified , strong industrial policy, leading to Luancai illegal mining , human smuggling and other bad behavior will be dragged into a vicious cycle pattern of the entire industry , the domestic rare earth enterprises in the science and technology research and development, technology research , etc. insufficient emphasis areas are also an important reason for China's rare earth industry dragged down the global value chain to climb .

" China's rare earth deep processing of a small number of products , companies merely to puerile profit model, and thus missed the best opportunity occupied the commanding heights of industry . " Weiqi Ning said . To solve these problems, countries need to further improve the implementation of the R & D work in the purchasing and storage policies to promote the integration of the group simultaneously.

Learn to adapt to the new situation and new rules

Insiders said that to ensure that China occupies a favorable position in international trade , and enhance China 's rare earth industry in the international market competitiveness, we must adapt to the rules of the game under the new situation .

As early as a few years ago, China 's rare earth industry consolidation began , intended to build the whole industry chain of rare earth and really change the status of the rare earth scattered over the years . 2014 , the State Council approved the formation of a national program of work of large rare earth group , a clear north Steel ( Group ) Corporation, China Minmetals , Chinalco , Ganzhou Rare Earth , Guangdong and Xiamen Tungsten Rare were led to further promote mergers and acquisitions , formation of large rare earth enterprise Group .

Li Qing said that if the formation of the six Group , the country is expected to create a new pricing mechanism for rare earths , foreign customers want to buy Chinese products , you can go to negotiate and sign a long-term agreement on behalf of several large companies throughout the domestic industry , and the current " a meeting of one price "approach compared to , of course, to get a bigger say in the international market .

In addition, Li Qing suggested the rare earth industry can also try new financial instruments . "At present, Baotou and Ganzhou Rare Earth have set up exchanges . Should support these exchanges, if the futures and spot trading volume on the big upgrade these platforms , we may be done by the average exchange settlement price . These new international business model are worth exploring. "

Enhance the degree of integration also allows the industry to deal with WTO requirements liberalization of export quotas to add some " clout ." The industry believes that liberalization of China's export quota of rare earth industry competition will become more intense , but not for the industry to produce " devastating " impact. "In the past companies scramble for more export quotas for foreign exchange , if the six group formed , will bear some responsibility for the development of the industry . " Li Qing said.

Weiqi Ning said the outcome of trade disputes has long been expected to insiders , the corporate level also has taken steps to advance the impact of indigestion , rare and storage policies at the national level will further enable enterprises out of this predicament . "However, given China's rare earth industry, which sounded the alarm , industrial upgrading, optimization and adjustment , mergers and acquisitions, technology development , and many other core work urgently accelerated . "


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Which lasted two years, the United States , Japan, EU trade lawsuit against China 's rare to make a preliminary ruling on March 26 , WTO ruled against China , finds China 's rare earth export restrictions and export taxes and other related systems in violation of WTO commitments. Although China may appeal WTO Final Commission within 60 days , but the possibility of winning is minimal. Insiders told the China Chemical Industry News reporter interviewed generally agreed that , after the final ruling , in our country there may be six months to a year are forced to modify the export of rare earth industry policy , from 2015 onwards, of rare earth export quotas or canceled export tariffs may also be reduced. This means that policy changes related industries affected , the relevant business or China's rare earth industry will face a new round of reshuffle, long-term good regular large-scale enterprises.

Anonymity of large domestic rare earth company official said the China Chemical Industry News reporter , the United States , Japan and Europe to China rare earth trade litigation , in essence, is unbearable Chinese rare earth export prices artificially high, rather than the quota system itself. He told reporters , in fact, from 2011 to 2013, China's rare earth export quotas are not exhausted , the impact of foreign demand for rare earth quotas absence . 2011 Chinese rare earth export quotas only took 52.01 percent , 48.75 percent in 2012 , while in 2013 the total export quota of 24,000 tons of rare earth , rare earth export quota for the actual physical volume of products throughout the year only 22,900 tons , it does not run out . Rare high prices also contributed to sharp drop in domestic demand for rare earths and rare earth alternatives to accelerate the development and application of the direct cause . According to the annual report shows that in 2011 China's largest rare earth production companies Baotou Steel Rare Earth Marketing income 115 million, operating profit of $ 7.3 billion, nearly 70% profit margin . 2012 and 2013 , although the market has shrunk , but the company profits reached 1.51 billion yuan , 1.574 billion yuan .

China Chemical Industry News reporter in an interview that the industry enterprises are considered , WTO losing is not a "scourge " , the impact of China's rare earth industry are also not negative , it should be said to be " mixed ."

"If the export quotas and tariff reduction , rare earth prices will then be adjusted downward , causing the industry reshuffle is inevitable enterprise . " Huayi Huyao Bin , general manager of Inner Mongolia Rare Earth Co., told reporters . He analyzed that the good news is that after the release of rare earth exports , with the decline in the cost of Chinese overseas orders will increase. In addition, the low tariffs or to squeeze the living space of the smuggling business , big business more profitable for the formal . The short term, foreign markets because consumer demand is likely to increase the price downward , can stimulate domestic enterprises rebound in exports , is expected to alleviate the shortage of rare earth related products demand pressures.

He believes that from rare earth production and business long term, the impact of rare earth export policy adjustment is not the key reason for the industry operating order. Excessive exploitation of rare earth bring supply and demand imbalance , excess capacity, low industry concentration , resource potential illegal violations , lack of domestic enterprises and technological innovation, low-end chain is a major problem plagued the development of China 's rare earth industry . Therefore, if the award can boost our long-term governance of violations, enhance domestic and foreign demand , the upgrading of industrial technology, the industry's long-term good business .

Huyao Bin said that in 1985 , China began to implement a rare earth export tax rebate policy , rare earth exports increased year by year ; 1998 , China began to implement a system for licensing the export quota of rare earth products , and the inclusion of rare earth materials processing trade ban catalog ; 2005 years , the Chinese government canceled the rare earth export tax rebates, export quotas and reduced the corporate places. In fact , over the years the rare earth export restrictions limited to raw materials, functional materials exported to downstream devices and applications , such as no restrictions . At present, China 's rare earth export more products to materials, device -based, so the WTO against the export of such products are not affected.

It is understood that actively prepare after losing a few companies , the means are different. Baotou Steel Rare Earth , the official told reporters that the ruling against the State designated lead for leading the restructuring of large enterprise groups will not cause too severely affected. The official said that the best response is to clear away the obstacles in the process of mergers and acquisitions , to allow more companies to participate in the restructuring , rare earth materials production enterprises to expand the scope of the merger , after all, Baotou Steel Rare Earth Mineral Resources have upstream control advantage, competitive opponents are mainly exported after the release of foreign enterprises .

The general feeling is that the situation is grim large number of private small and medium rare . The companies said the United States and Australia have started production of other rare earth mine , China's global share of rare earth output , has now dropped to 85% from 95% three years ago. After the release export , and renewed international pressure of market competition , better coping strategy is to constantly improve the technology and equipment to meet our large group merger conditions , and into large groups , such as the conversion does not meet the conditions in other industries or only faces close of business.

Face exports of rare earths "gate " will open at the low end China's rare earth industry chain enterprises generally international competitiveness relative weakness dilemma. Ministry of Industry and Industrial Research Institute of Materials CCID director Yuankai Hong believes that state and local governments at all levels should be reduced by direct intervention , in addition to involving national security rare earth new materials industry , the indirect effects can be achieved through taxation , regulatory , institutional , financial resources and industrial policy should focus on basic , strategic and applied research oriented sectors , in order to promote rare earth enterprises to develop high-end products of rare earth materials .

Expert opinion

Three factors that accelerate business " shuffle" process

The former State Planning Commission, the panel members from RE Mapeng

The end result is losing quota of rare earth cancellation policy , lowered tariffs on exports of rare earths gates open, opened the prelude to a new round of corporate reshuffle . On the one hand , a period of time , all kinds of rare earth products in general prices will fall further , which will directly lead to the closure of some SMEs outs or acquisitions ; on the other hand , for environmental reasons, the government will stimulate industry consolidation on the basis of pre- accelerate large group reorganization process.

After the release of rare earth exports , domestic enterprises will soon be a new round of reshuffle , its three main reasons: first , driven by economic interests , the role of law in the new situation and new markets , companies will inevitably arise between competing prices down again phenomenon , rare earth prices began to fall and eventually return to a rational range. In this case , according to the survival of the fittest rules for SMEs , the number will be significantly reduced . Due to the current rare earth market ripe honed over many years , it does not appear years before the industry is worried about the kind of " cabbage price ."

Second , if not strengthen supervision , it is possible to stimulate domestic illegal mining of rare earth minerals dug steal rebound phenomenon , exacerbated by environmental degradation , disrupted the market order , and even make the results of the industry in recent years, regulatory governance destroyed. To avoid a repeat of past exploration and production of rare earth resources to pay the huge environmental costs of mistakes , the state will increase efforts to crack down on illegal mining and production , and will accelerate the pace of consolidation and restructuring of a large group progress to improve industry concentration , optimize the structure of domestic enterprises to compete . Currently, the national focus on supporting the Baotou Steel Group , China Minmetals , Chinalco , Guangdong earth, Ganzhou Rare Earth and Xiamen Tungsten led six companies to promote mergers and acquisitions work was not successful, as the WTO to resolve the adverse impact of losing , this process will be accelerated.

Third , the domestic and foreign enterprises to compete with Taiwan time has come , it will exacerbate the impact of domestic enterprises make the industrial structure has changed . Currently , the Australian Lynas Corporation, USA molybdenum mining company so rare in the implementation of development projects, some projects have begun to supply products to the market , foreign companies will be forced to re-shuffle in the world's rare earth market platform.

" severity" of rare earth enterprises or different fate

Rare Dean of Inner Mongolia University of Science and Technology Zhang Yin

To cope with the adverse effects of WTO brought against the rare earth industry policy implemented by our government is most likely to implement differentiated classification management of LREE , which is to release the export control some species , such as the management of the light rare earth exports to some extent liberalized, but still heavy rare earth implementation of conservation policies. So the biggest variable is the light rare earth production enterprises, the future " severity " rare earth enterprises in the new round of reshuffle tide of fate or will be different.

China's rare earth resources can be divided into light rare earth mine in northern and southern ionic heavy rare earth mine. Serious excess of light rare earth products , especially lanthanum , cerium products. Future oversupply of light rare earth , but there could be a shortage of heavy rare earth phenomenon . Meanwhile, the heavy rare earth high-tech products are the main raw materials required . United States, Malaysia , Australia, South Africa and other countries launched projects are light rare earth project , the shortage of heavy rare earth resources, especially dysprosium, terbium and other elements almost nothing, and therefore foreign demand for China 's large heavy rare earth , they must rely on China .

Compared with the heavy rare earths , light rare earth regardless of domestic and foreign reserves and production are large, the economic value and strategic significance is not large, export prices are expected to dip further , light rare earth companies have been hit relatively large production operations increasingly difficult. The product itself, the market supply relative shortage of heavy rare earth enterprises , if the state implemented "system protection " export , the distinction between heavy and light rare earth rare earth tariffs , light rare release , heavy rare earth strict, narrow policy control, coupled with regulatory sector is also increasing efforts to combat illegal mining of heavy rare phenomenon, its price will not significantly reduce the risk , but corporate profits have improved to varying degrees .


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China Rare Earth Industry Association, the professional branch 2014 annual work conference held in Beijing . Secretariat of the Association and all the leaders of the professional club leaders attended the meeting. The meeting was chaired by the Secretary General Ma Rongzhang Association .

At the meeting, Wang iron Association Deputy Secretary-General announced the " China Rare Earth Industry Association, the professional branch management approach" ;Chen Zhanheng time Deputy Secretary-General to convene the Association introduced the members of the General Assembly in 2014 and the " 2014 International Conference on the market of rare earth resources ," the preparatory situation ;Wang Deyong deputy Secretary made ​​a " rare association statistics reports on the situation ," the Association last year on the operation of the enterprise production and operation statistics and price statistics were both working instructions and suggestions for future branch statistics .

Branch Secretary of the professional branch of its operation a year made ​​a report , describes the status of an industry branch related fields, and make this year's work plan.

Meeting to discuss the development direction of each branch in related fields. Each branch of the upstream business can continue to hope that the rare earth , stable supply of rare earth products , suggested that the state can focus on supporting the development of the field of application of rare earth , rare earth balanced use of the elements .


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