World Trade Organization (WTO) ruling in China and the United States , the European Union (EU) and rare earth exports to Japan in a dispute against asking China to eliminate export restrictions on rare earths , which is considered a major victory for the developed economies of China made ​​.

It should be said that this is lost once expected, United States and Europe in 2012 to formally propose the WTO complaint . But as early as the summer of 2009 , when the European Union, the United States and Mexico has the raw materials to China 's export restrictions on WTO policy report , cited by the three parties involved in raw material bauxite, coke, fluorspar , magnesium, manganese, ferrosilicon, silicon carbon , phosphorus and zinc nine kinds .年初2012, WTO Dispute Settlement Body determined that Chinese restrictions on the export of raw materials do not meet China's WTO accession commitments and the relevant WTO rules. But the industry generally believe that action against these nine kinds of products, but it is just testing the waters , the real goal of the developed economies in fact intended to rare earths.

WTO opened a very important precedent , according to the impact of this ruling on rare earths surface involved , it can be said that China's accession to WTO, the biggest defeat suffered 10 years .

Of course , this can not be protracted dispute with the ruling Rare 26th settled. In accordance with WTO rules , the Chinese side can appeal within 60 days. From the position of the Chinese Ministry of Commerce, the first time - expressed "regret " and said the report is an assessment of the award - point of view, the appeal is inevitable, although the outlook is not optimistic.

China " Rare war " with a long history of Western developed countries , mainly due to dissatisfaction with China in recent years, the latter decreasing exports of rare earths . The dispute sudden warming since the second half of 2010.

In early September 2010 to coincide with the Day " Diaoyu Islands collision " , while Japan is not only the world's biggest importer of rare earths , and its imports almost all from China ( Japan is the second country in the world rare earth consumption , imports nearly 20 percent of global rare earth ) , many a time the Western media have speculation, " China is trying to control exports of rare earths to achieve political objectives ." By the end of October 2011 , the then U.S. Secretary of State Hillary Clinton publicly urged • United States and its allies to reduce dependence on China 's rare earth production , but also called it " a wake- up call for us ," senior officials in Western countries may be published on this issue the most forthright speech, but also to the dispute over rare earth onto a climax.

In order to eliminate fears and misconceptions of the whole world , in the past few years, from former Chinese Premier Wen Jiabao , the current Premier Li Keqiang to the heads of the relevant departments of the State Council , China had repeatedly expressed do not prohibit or restrict exports of rare earths mean , the Chinese side also repeatedly urged countries not to politicize the issue of rare earth trade .

So why exactly is so rare it affects people ? Because of its importance is evident.

Rare is lanthanum, gadolinium and other 17 kinds of special metallic elements collectively , they have a strong magnetic force , or , or can enhance the ability of the metal temperature . These elements are widely used in all industrial fields, especially critical for the current very popular new energy and other high-tech products. Thus it was that , if not rare , most of the modern economy will stop functioning .

Almost all of China's current monopoly of the world 's rare earth supply - the supply of more than 90% of global rare earth production , of course, he is consumed more than half of the world's rare earths . So , 20 years ago, Deng Xiaoping once said this: "The Middle East has oil , China has rare earths. " It is said that the slogan was carved in the world's largest rare earth producer - on the walls of the high-tech Co., Ltd., Baotou Steel Rare Earth .

However , it is worth noting that the name "rare earth " , it is actually not rare, everywhere around the world is rich in rare earth minerals , China 's rare earth reserves only account for less than 40% of the world's total reserves . Therefore, other countries are much too scarce rare earth , as it is too costly and difficult because of mining or unwilling to produce .

Leaving aside the Westerners in China " politically motivated ," the unfounded speculation in recent years, Chinese government restrictions on exports of rare earths mainly based on the consideration of the following aspects : First, the rare earth mining and processing can cause serious air , surface water, soil and other aspects of environmental pollution , is typical of high pollution , high energy consumption, consumption of resources industries ; second , in 2010 10 years before rare oversupply in the international market , Chinese manufacturers have no pricing initiative , the price all the way down , there has been the so-called "gold selling cabbage price " situation ; third, because China itself is the world's largest rare earth consumed before, according to the current production rate, there were reports that China 's medium and heavy rare earth reserves only last category 15-20 years may eventually need to import themselves ; fourth, China also hopes to encourage foreign enterprises to users of rare earth enterprises and relocation of production facilities to China, and not sell cheap raw materials from abroad , which is rare for the province of Inner Mongolia, economic growth and employment are extremely important in promoting tax and even promote the entire Chinese manufacturing upgrades.

It should be said , and both these demands is reasonable , so in recent years, China 's domestic rare earth mining and trade imposed strict controls . In this sense alone says , WTO ruling against China is very unfair , because no country is obliged to sacrifice their own interests to the benefit of the other countries of the world , which is China down a ruling on the above reasons to feel particularly aggrieved .

However , on the other hand , we must also see that the Chinese government in order to safeguard their legitimate interests , but it took a lot of very wrong means. I think , in large part , this is trapped in his own people inside and outside the crux of embarrassment . Since 2008 , China 's management of rare earths are mainly taken the following policy -

First ( and most important ) , issued from 2010 rare earth export licenses and quotas are almost declining.

Followed by the implementation of the restructuring of shutting down a large number of so-called " scattered, chaotic , small" mines, trying to integrate the country's rare earth production for the northern and southern two miners and processors of the Commonwealth , and the establishment is called Rare Edition " CISA " has a huge administrative powers China Rare Earth industry Association . Currently , the North 's integration has been completed, basically all the focus to the Inner Mongolia Baotou Steel Rare Earth there ; case the South is relatively complex, and so are actively planning for the integration of Minmetals cause. Here Incidentally, China 's rare earth reserves , mainly in the northern Inner Mongolia, while the South is relatively scattered , and Jiangxi provinces reserves are more plentiful .

Third, and this is closely related to the establishment of so-called rare earth reserve system , and the first batch of 11 designated national planning mines , industry access conditions set by the government and approved by miners .

Fourth, improve the export tariffs on rare earth and rare earth resources tax.

We mention some of these policies - such as export quotas and tariff increases - are likely to conflict with WTO rules , even without considering the external factors only to promote the healthy development of the industry and market this goal theory, these policies are mostly more harm than good for .

For example, the limitation and reduction of export quotas , on the one hand to promote the international market soaring prices of rare earth ( RE part of the price rise in the past two or three years of up to 500 %, which is the source of discontent European countries ) , on the other hand , due to the country 's production did not fall, resulting in even greater disparity between the inner and outer post . The end result is two-fold: First, export prices rose quota itself ; According to state regulations , transfer and trading of export license is illegal , but the fact that the market has not only exist, but in recent years become increasingly popular. According to reports, in 2011 , the market price of one ton of rare earth export licenses , has grown from a few thousand dollars a few years ago rose to 40-50 million, which almost makes export licenses worth over rare earth minerals itself ! The second is greatly stimulated the smuggling of rare earth . Authorities estimate that in 2010 the country may have been smuggled out of the country more than 30,000 tons of rare earth !

Greater harm these policies also that we can see at a glance that they are by the executive power ultimately will have a market which is already a prototype ( although it may be more chaos ) of Chinese rare earth mining , processing and export monopolies in a few large state-owned enterprises ( or even central enterprises ) hands. This is much like the last century, the so-called "oil industry consolidation " in the 1990s . But years of experience have taught us , there is a state-owned enterprise administrative monopoly , is one of the biggest obstacles to China to further promote the market-oriented reforms.

And, to say the least , expect them to protect the environment and achieve technological advances are likely just fantasy. This is because , in the final analysis they themselves are not really producers , like other administrative monopoly central enterprises - the most typical is the infrastructure construction business - like the real " work " of the people is that they subcontracting companies , that is, or those scattered, chaotic , small private enterprises, state-owned monopoly , but is likely to be some of the government 's restrictive policies ( including access cards , licenses , etc. many private businesses can not insurmountable sturdy barriers ) support with the " rentier " only !

Can really protect the national interests of the proper focus of rare earth policy should be guided by laws and policies , to find ways to raise the cost of production of rare earth in China , so that market forces will spontaneously reduce its supply and export . The so-called raise costs , is to develop a higher threshold environmental requirements and local environmental pollution compensation ( such as sewage costs, etc. ) of rare earth production , while requiring companies to vigorously enhance the safety and treatment standards of corporate employees. This is fully consistent with the WTO agreements. In the judgment of 26 May , WTO did not recognize China for the protection of resources and the environment and to limit exports of rare earths proposition. In fact , it is not opposed to China 's environmental protection efforts , but that can not be in violation of WTO law to policy measures to promote environmental protection . In fact, as we have already seen . These policies are not necessarily able to achieve environmental policy in mind.

For a long time , China 's rare earth why sell so cheap is because the production of external costs ( such as environmental pollution ) it produces shared by the whole society , as long as the policy of this country through the rational part of the external costs appropriately translated into economic costs allow enterprises to bear alone , do not need to worry rare resale price Huang ? On the other hand , the so-called competitive enterprises bigger and stronger so that , nor is issued by the state-owned monopoly mining license will be able to do. On the contrary , it should equally be encouraged enterprises of different ownership fully competitive , free market rules by mergers and acquisitions . Thus , over time , efficient , high- level corporate management will naturally eliminate those inefficient enterprises.

And now we do not start from the root up , but part of the external costs of trying to put together , converted to reap the profits of the few state-owned monopoly , is it wishful thinking ?

In summary, China, the United States and Europe Day "rare earth dispute " with China and Australia , Brazil and other countries , " iron ore dispute " in nature is the same, although one is exported , and the other is imported . "Gold selling cabbage price" when China's exports of rare earth and " cabbage price to buy gold ," Chinese imports of iron ore when the facts are irrefutable , we are indeed at a disadvantage . However, in order to solve this problem , the Chinese regulatory authorities always involuntarily plan to regain control of the economic and administrative old ways , trying to cancel the competition in the domestic market ( it think that this " disorder " is causing us to lose the competition reasons ) , the establishment of administrative monopoly called " a hole " ( almost always state-owned enterprises ) unified external , to improve our voice in the international market . But the practice for decades has repeatedly proven that this approach runs counter to the market economy not only makes us Have ineffable sorrows, people inside and outside , but is actually impossible to achieve the desired goals of these policies are implemented , but the only result domestic monopoly interest groups provide fertile soil unearned only.


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RE market deserted on the first day after the holiday , businesses wait and see attitude based , offer no positive or stable pricing. After some businesses now understand the quote before the holiday is still a continuation of the main trading varieties of lanthanum, cerium , praseodymium class , europium, terbium aspects turnover is less than normal , before the bullish europium, terbium oxide merchants stocking outlook reflect still more now shipping difficult. Today, the rare earth market traders dysprosium oxide, terbium slightly inquiry , according to the Baotou Rare Earth Stock Exchange listed market prices show that today terbium oxide, dysprosium price volatility is relatively large, as of 14:00 today , terbium oxide stock listing Quotes of 4255 yuan / kg , volume more than 100 kg . Dysprosium oxide , compared with 2,240 yuan / kg , volume 110 kg .


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WTO ruling on Chinese exports of rare earth problem entirely the result of selective hearing those referees , officials , who only the interests of the advanced countries , while ignoring the reality of global development, did not see the irreparable damage to the environment caused by mining and backward at the same time they also did not see a reduction in the supply of rare earths can promote the development of modern industrial technology , thereby reducing the degree of harm to the environment destruction.

First, those officials should have never been to China's rare earth mining site , those behind the domestic mining technology and mining operations is definitely crazy enough to understand . According to the author 's face value , rare earth mining in many parts of the country have adopted the disastrous mining technology . To get petty , miners tend to be emptied whole mountain , leaving a barren. Meanwhile hazardous substances four diaspora , threatening people 's health. If you want to manage this environmental damage , not only requires a lot of money , but also take a long time , in fact, difficult to estimate the cost of governance . Therefore, China has adopted various measures to curb the exploitation of rare earth blind is absolutely necessary .

Secondly , they did not look at the status of technological development, China's export restrictions on rare earth actually brought a leap of industrial technology. Originally manufacture of high-tech equipment is almost inseparable from earth, from the law of industrial technology development perspective, this bottleneck problem to be solved sooner or later , while China 's export policies to speed up the process of solving this problem .

Due to rising prices of rare earths , Toyota , Mitsubishi Electric and other Japanese companies have developed more than a dozen completely without rare earth magnet motor , METI specially set aside 8 billion yen to support. Under economic pressure to produce such an effect developed quickly . Hitachi rare earth permanent magnets used equally effective successfully developed completely without rare earth motor. In this production process using Hitachi rapidly cooled and solidified amorphous alloy , not only won the International Electrotechnical Commission (IEC) to the highest standards of energy efficiency, but also reduces costs. Enterprises to achieve such outcomes is more than a company of Hitachi , Showa Denko also successfully developed a rare-earth magnet alloy does not require material that can be widely used in IT and other high technology fields .

Moreover, Japan's rare earth recycling technology has also been a breakthrough. Japan's Honda Motor and heavy chemical industry to jointly develop recycling rare earths from used batteries of hybrid cars in the new technology in the world is also an innovation. With this technique, can be recovered from used batteries to more than 80% of rare earth materials . The Panasonic is also actively develop recycling technology of rare earth materials from the waste air conditioning .

The successful development of new technologies and put into use, issued by the Japanese media, China's rare earth lost an important customer and sorrow market news. But from here, but we can see that China 's restrictions on exports of rare earths is actually extremely important , on the one hand has been forced to reduce the effect of protecting the exploitation of the environment, on the other hand , such a policy is not only not harm the development of modern industry, and also contributed to the upgrading of related technologies. Very unfortunately, Europe and Japan as well as the effectiveness of WTO officials took these selective hearing , so where we do not have any chance of winning.

So , we do not need more articles in the export quota , in order to the national health , for the benefit of future generations , we need to increase efforts to protect the environment , exploitation of rare earth resources in higher demand , due to the exploitation and management should the cost of environmental damage caused by the added price of rare earths . As for automobile exhaust emission requirements more stringent and did not hinder the development of the automotive industry , industrial policy is strictly not hinder the healthy development of rare earth industry .


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As the first rare earth producer and exporter country, but the development of China's rare earth market was chaotic . Overcapacity in the domestic rare earth mining is very serious , serious waste of resources and ecological damage. Disorderly competition makes the "industrial gold" has sold rare earth became " cabbage price ." And with this in stark contrast to the United States, Australia and other countries extremely rare earth resources , but their limitations and stop the exploitation of rare earth in favor of imports from China .

Zhang Anwen , deputy secretary general of China Society of Rare Earths on , frankly, the WTO ruled against the appeal and China's rare earth export quota system is " beyond the expected, makes sense ."

Back in 2001 the accession negotiations for accession to the WTO, China as promised , within the prescribed period to cancel the export most of the products exported annually 2009-2015 clearly no more than 35,000 tons of rare earth . 2010 , fell to 30,258 tons of export quotas beginning .

Zhang Anwen said to heavy rare earth mining in southern China as an example: In order to get 10,000 tons of heavy rare earth oxides, 100 square kilometers of vegetation will result in the destruction consideration shocking. " Our pay and unequal access to a serious imbalance . " Zhang Anwen respect, protection of resources and the environment and regulate industrial order , it is the policy of our government to implement protective measures against the rare earth industry in mind.

"Although China's rare earth export quota system eventually sentenced violations, but after a full defense and the burden of proof , WTO Expert Group endorsed the policy objective for China is still protecting the environment, resources and sustainable development needs , in line with the special nature of WTO rules . " Zhang Anwen said .

industry long-standing "cabbage price" behind

A series of policy measures to effectively regulate the market of China's rare earth industry . China Rare Earth has changed in the international market, " cabbage price of gold to sell ," the status quo. But for China's cheap rare earth consumption habits of foreign companies, whose interests suffer.

Earlier, assistant to the president of China Minmetals Mr Wang said in an interview that in the past China's rare earth industry are selling raw materials, do not pay attention to the back-end applications. 1 dollar of rare earth materials , we roughing up to sell 10 yuan , 20 yuan , to the U.S. and Europe made ​​product, we will spend 1,000 yuan to buy it back.

" Why should we sell cheaper to buy when they so expensive ? " Zhang Anwen on frankly, behind the kinds of rare earth industrial development in many long-standing presence .

Zhang Anwen said China 's rare earth industry , is one of the few industries with certain international competitiveness . In support of the state policy , entirely on its own resources and technical capabilities to achieve from rare earth mining , smelting, to environmental protection, good development .

However, China is a " rare big country" , they are not "rare earth power ." Rare earth industry itself has a very prominent issue, focus on performance in five areas . First, the rare earth mining , smelting production overcapacity serious , rare earth oxides capacity and output ratio of about 3.2 , much higher than steel, cement overcapacity excess coefficient industry ; Second, under Gregory driven by high prices and mining and smelting separation, environmental pollution and ecological damage costly ; third , private mining digging , serious cases of smuggling of rare earth , rare earth prices under long-term impact of non- market factors ; fourth , industry concentration is not enough ; fifth, China's rare earth downstream industries development is weak , the situation in the " nuclear high base " and the kinds of applications of rare earth materials more serious .

Rare earth prices Governance secure first

If the complainant is still not ideal situation , China will have to amend the related export restrictions , which will have a greater impact on the rare earth industry ?

" RE game depends largely on the price . " Zhang Anwen on said that in the short term, the rare earth market may form a certain degree of price volatility . The large fluctuations in the price of rare earth products for the downstream industry chain development is not the gospel.

"fear of rare earth price spike . " Shenzhen Tianli and Magnetic Industry Co., Ltd. Marketing Department is responsible for people , said the company set up in Ganzhou NdFeB production base, in rare metals processing, production of NdFeB, magnetic buttons , and other magnetic products. 2011 to 2012 , a roller coaster -like rare earth raw material price changes , so that the whole industry enterprises to withstand a lot of pressure . As the rare earth raw materials skyrocketing , even smaller than the profits of deep processing of raw materials mining profits. Rare earth materials soaring overnight over a lot of people are doing magnetic materials, has nothing to do with the rare people who started in this industry , and now serious excess capacity many companies have cut production and protect the price . The demand side of enterprises turn to look for other alternative materials , magnetic materials applications hit the market .

" Rare earth prices , the first rule secure . " Zhang Anwen on the said industrial development is the most taboo volatility in raw material prices , the further development of rare earth downstream industries, promote the application of rare earth material harm than benefit . Should establish a relatively stable price formation mechanism of rare earth products , to provide a stable environment for the enterprise market enterprises downstream applications .

2013 onwards, China Rare Earth Industry Association has released the rare earth industry price index in the form of the price range from the industry 's 25 most representative sample of companies forming daily trading price statistics . Maintenance industry run by the price index , the impact of inhibiting capital speculation .

Zhang Anwen also reminded enterprises, foreign rare earth development and utilization of international environmental concern. United States , Australia, India and Russia have a wealth of rare earth resources, in 2013 , Greenland abolished the ban on uranium mining and rare earth mine , allowing domestic and foreign mining companies exploiting mineral resources in its territory in the Arctic . This means that in the future , in the world or the formation of diversified international rare earth supply system.


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