Japan to promote the removal of rare earth in China, worries and then out control measures

Foreign media said the Chinese government announced the cancellation of rare earth export quotas. Since the beginning of 2010 the export control issues finally come to an end road. Chinese rare earth export restrictions during the Japanese companies to promote the development of alternative technologies to reduce the amount of rare earth, and therefore the elimination of export quotas of Chinese influence is limited.

Read more: Japan to promote the removal of rare earth in China, worries and then out control measures

Restrictions on exports of rare earth, is a blessing or a curse?

Commerce Department recently released "2015 list of goods export license management", on which the rare earths, tungsten, molybdenum and other goods elimination of export quota license management, which means that government restrictions on exports of rare earths has been liberalized. The introduction of the news, exports to China rare earth industry is a blessing or a curse, so many people elusive.

"The Middle East has oil, China has rare earths." Unfortunately, yield and price of the entire Middle East oil, led by Saudi Arabia's oil-exporting countries (OPEC) control, said price increases on prices, said the price is the price, the price of oil from lower in the second half of last year, more than $ 100 to less than $ 50 in early 2015 is proof. Moreover, China's rare earth it? Like oil as an important strategic resource countries, China's position and did not speak, but control of the price falls in the hands of Japan and the US and other countries, China has accounted for 90 percent of global rare earth supply, almost to the "cabbage price" supply these users, but they also seem to pick and choose, that the East West Road, which makes us indignant people. Beginning in 2010, the state began to tighten export of rare earth, rare earth export quota management implementation, so that the last year export scale 4-80000 tons reduction of about 30,000 tons. Control of the supply of rare earths, was the United States, European Union, Japan reported to the WTO, China lost the arbitration result lost the lawsuit.

Today, whether it is because the WTO lost, or that the recent sales slump rare earths, China consciously open market, no matter what the reason, but the result is liberalized. But after the release supply, China's rare earth exports are soaring or showed little reaction, the price is to enhance or still in the doldrums, indeed debatable.

In the past because of ignorance and self-interest, of some companies and individuals to these precious destructive mining of rare earth resources, China's export of high-quality low-end rare earth products, leaving descendants are harming the environment. In the rare earth mines, many damaged beyond recognition mountain, almost impossible to recover and become a torn Earth scars. It was also calculated that an account, a lot of places if you want to restore the environment to pre-mining environmental levels of rare earth, rare earth put money in selling flowers in, it simply is not enough.

According to statistics, every 1 ton south separating ion adsorption type rare earth ore, need to consume 8 to 10 tons of hydrochloric acid, 6 to 8 tons of liquid caustic soda or 1 to 1.2 tons of liquid ammonia and so on. Not only ion adsorption type rare earth ore, refining separation Bastnaesite etc., but also use a lot of sulfuric acid or caustic. A lot of acid and alkali-containing fluorinated ammonia nitrogen waste, waste gas or waste water, most will not conduct arising after the effective extraction of rare earth recycling, the influx of the natural environment. In a sense, the pollution caused by rare earth production, poisonous after nuclear leak. This is not alarmist, the real facts around us. This was exactly what the main cause of the country to tighten exports of rare earths.

Now let go of rare earth export countries, with a view of China release does not mean China will relax control of rare earth supply, I also agree with this view. Earth as an important strategic resource, especially with the military and high-tech related, must look tight job. Although the current market downturn is very rare, but "industrial MSG" role can not be replaced. In recent years, in order to oppose China's export quota restrictions, the United States and Japan and other countries to find a substitute for preaching or find a new large rare earth mine in other places, with psychological warfare shake our determination and confidence, but its greedy ambitions was people look very thoroughly.

Country liberalized exports of rare earths, the surface is a victory for the WTO rules, but also to China to learn and grasp the opportunity to make use of WTO rules to safeguard their rights. I remember in order to find the resources of many companies to go abroad, the country is also the world's resources of Australia, Canada and other countries to invest in mining, but in the future, "the mining hot" boom receded, Chinese overseas mining investment eighty percent failure, painful lesson.

At present serious environmental damage and environmental pollution, so that our government has realized this problem of serious harm, so we learned to "learning technology to the barbarians," we let go of the export of rare earth resources, but mine certainly set strict environmental conditions, environment-friendly enterprise standards and tax adjustment lever China's rare earth production. This not only makes our control scale production of rare earth, but also to control the pricing of products and the right to speak, which is the development of China's rare earth strategy is undoubtedly an invaluable "gospel."

It is reported that during the WTO proceedings on our government really has not been idle, moves quickly, the good news again and again. Consider the long-term development of the industry, the Ministry of Industry at the end of the completion of the rare earth group formed six countries, and continue to promote the industry consolidation, consisting of strong foreign fist. Arguably, if China's rare earth industry consolidation on the basis of this, so as soon as industrial upgrading, to shift from exports of high-tech products export of primary products to enhance the added value of China's rare earth products, it really is worthy of our happy and proud thing.

But to hear the "good news" wonderful, but also to see the "Misfortune" soon. Since release of these rare private mining profits are concerned means "good news", they undermine and disrupt the market on the environment, to the normal development of the rare earth industry to bring the scourge, for everything from environmental considerations eradicate private dug Luancai and smuggling of rare earth "black chain", is one thing you must do.

Otherwise, their "open eyes closed eyes" of leniency, the country would be a "catastrophe."


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US media commentary RE: China is a responsible stakeholder

United States, "Washington Post", the original question: Why China to act as a responsible stakeholder? Earlier this week, China announced on rare earth exports, will act in accordance with the global rules of the game.

In this regard, "Wall Street Journal" explained: China canceled the strategic value of mineral export quotas. This restriction policy a decade ago, has triggered a global trade dispute, prompting some countries to reduce dependence on Chinese supplies ...... British North Quayle Blue Oak analyst Frank Tang (sound), said: "This change may be due to the pressure of the WTO (China against). China said that as a WTO member, China must comply with WTO rules. "

In contrast with the usual view, China is actually like a responsible supporter of global economic rules of the game, as acting, rather than a country founded by the United States is determined to weaken the system. Changes in domestic rules to comply with its international obligations, is China policy coordination to maintain an example of a more open economy. This is a victory for global economic governance, and is easily achieved.

Of course, whether living or global political economy, in fact, is not so simple. Ed Crooks in the "Financial Times" explained that Chinese cooperation for another reason: "The United States Department of Defense, a former adviser believes that China is unlikely to maintain control of the global rare earth market, because countries in improving the efficiency and to find other sources. "

So in other words, China rare earth policy results in 2010, the WTO has made a ruling adverse market reaction is prices, severely weakened China market dominance in the rare earth sector. China WTO ruling suddenly default, it seems not considered concessions. This is consistent with a point I made last year - the most powerful economic strategy is market forces and policy responses at the same time play a role. Russia's economic sanctions is the case, the issue is now on the Chinese rare earth as well.

This is also an example of the role of the system - you can choose as China reacted like Russia, but it opted for a more pro-neoliberal road. Russia, Venezuela and other countries when they are first and foremost export prices fall, trying to challenge this system. The results of these countries, what's happening in China in the eyes. Now Beijing is willing to "subsidies" in some countries, in order to advance their own national interests. But involves the global economy, China attaches great importance to the interests of the global system to get, even more than the system of dissatisfaction. Therefore, China will remain a responsible stakeholder.


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Four development direction of China's rare earths

The early 1990s, the global rare earth market is monopolized by the United States, Russia and other countries. After 1990, with the liberalization of exports of rare earths, rare earths of a large number of companies began to engage in export trade, export competition makes the price of rare earth uncompetitive European countries, these countries Forced to adapt gradually worked their way to the development of rare earth resources, roughly can be divided into four directions.

First, the development of rare earth up to the national strategic level, multi-channel supply of rare earth. For security reasons the supply of resources, as the main consumer of rare earths in developed countries usually preferential procurement China, India and other suppliers of rare earth products.

Secondly, increased research efforts to enhance the application of rare earth technology, the high end chain. RE applications include "ore - concentrate - Separation Products - Functional Materials - Devices - Practical commodity" chain, closer to the back end, damage to the environment, the higher the efficiency. Including the United States, Australia, developed the main high-end industrial chain of rare earth, while China is located in the primary stage of the rare earth industry chain.

Third, the importance of the study of rare earth industry. Foreign long time on the rare application of basic research, there is a great advantage in practical applications in production. In some States, the European rare earth industrial base better business, usually have their own application of rare earth research, more targeted, making the research and application work closely together.

Fourth, the implementation of the development of rare earth alternative plans to further realize the sustainable use and development of rare earth recovery by improving technology, thus saving the rare earth resources and reduce dependence on rare earths.


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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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