Cancel quota of rare earth is ripe

Recently, the World Trade Organization (WTO) ruled that China 's rare earth export quota system violated trade rules , postponed for two years of the United States, Europe, Japan v. China 's rare earth end up losing the case in China , which again raises the industry's quota system for rare earth deposits waste controversy. Accordance with the rules , WTO ruled against the Chinese , the Chinese can continue to appeal , if eventually lost by repealing the rare earth quotas only a matter of time .

The author believes that the abolition of the quota system of rare earth is ripe , even without the WTO ruled that China should consider abolishing the rare earth export quotas.

Rare earth export quota system began in 1998 , the original intention was to environmental protection, regulate the export order. Three years after China joined the WTO, namely, as promised , within the prescribed period to cancel most of the product out ( into ) import quotas , only 22 kinds of commodities as of 2014 remains the purposes of quota license management system. Rare is one of the 22 kinds of commodities, and is the only non-ferrous metal resources. If canceled quota management , that means non-ferrous metal resources will bid farewell to the " quota era ."

In recent years, China 's largest rare earth exports face embarrassment , one is used up the quota , on the other hand is rampant smuggling , which makes the role of rare earth quota system is limited, even in name only.

The starting point is to limit the number of quota exports , regulate the export order. However, the amount of China's rare earth quotas in 2011 only 61.6% , in 2012 is further reduced to less than 50 % in October 2013, completed only 57.8% of the quota , export quotas simply not be completed , not to mention limiting the number of exported natural . An enterprise hard fight to 100,000 tons of export quotas , only to buy 50,000 tons , the quota what sense?

Customs export data from the above statistics , it is not necessarily true export data . Why rare earth export customs statistics data shrinking global economic downturn led to weak demand factors ? Is the United States, Canada and other countries to increase the exploitation of domestic rare earth supply it? No, the root cause of this problem is the smuggling of rare earths , or the name of the name of the primary export processed while disguised smuggling, Customs continue to find these major cases of smuggling of rare earth . The reason lies in the confusion of smuggling of rare earth production areas , private owners without permission wasteful mining , large ineffective integration of rare earth group , which points to China 's rare earth industry ills .

The effect of limited quota management , a number of shortcomings , the most obvious drawback is the breeding ground for corruption. Quotas are trade controls , there have gray transaction control and rent-seeking space , many companies do not export quota of rare earth , as long as the market " buy ," while sitting on the sale of rare earth quotas business indicators alone can get expensive income , this scene and coke quota year , the textile quotas chaos to repeat itself.

Another disadvantage is the " giving others a handle ." Since 1947 GATT (GATT, WTO 's predecessor ), the Member States and parties in order to reduce and eliminate quotas , the implementation of free trade efforts. Starting point of China's rare earth quotas is to protect the environment and resources, but this view is not accepted by a WTO panel , in this case , China needs to accept the " rules of the game " , if the continued implementation of quota management , which the WTO contrary to commitments .

Rare is the strategic materials , is the "industrial blood " , involving the national interest , the need to manage the whole industry chain , not just stare quota management , not suffering from addiction quota . Currently the country is vigorously promoting the integration of rare earths by Steel, Minmetals , Chinalco , Guangdong earth, Ganzhou Rare Earth , Xiamen Tungsten as an integrated subject, by association, merger , reorganization , etc., to improve industrial concentration. Overall, the rare earth industry consolidation has some success , several major Rare Earth Group prototype surfaced , but needs further grooming industry chain , to complete substantive consolidation. Cancel quota management , integration of rare earth industry is also a Forced .

China 's rare earth industry bigger and bigger and stronger , but the first step in the integration of resources , the greater challenge is to convert industrial model from export resources , export of primary processed into export processing products, accelerate application development and industrial upgrading, do potentially high value-added industries will remain in the country , this is the fundamental way to China 's rare earth industry .


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