Black market transactions accounted for the total trading volume of rare earth half WTO ruled little effect

Geneva time on August 7th, the World Trade Organization (WTO) announced American, EU, Japan Chinese rare earth, tungsten, molybdenum litigation related products export management measures case (hereinafter referred to as "the rare case") the Appellate Body report. The appellate body to maintain the WTO expert group on the Chinese product export tariffs, export quota measures do not comply with the relevant WTO rules and China joined the WTO commitment award.

A number of the industry to the twenty-first Century economic report reporter said, because it has long been expected, so the decision has little effect on the market. Professor, University of International Business and Economics law school Chen Weidong Academy of China part-time researcher WTO said, resources tax to replace or will be abolished export tax scheme, has been studied for a long time, but has not yet been introduced.

In addition to domestic trouble and foreign aggression. Baotou rare earth industry forum in August 8th, the State Ministry of raw material industry division inspector Jia Yinsong said, the main job this year or regulating the rare earth market hit, behind black interests chain of colluding with interest. Understand according to the reporter, at present the rare earth industry "black market" transactions have been accounted for close to half of the total trading volume.

On the other hand, a rare earth enterprise personage tells a reporter, at present south rare earth industry has been established in Ganzhou, Guangdong rising nonferrous rare earth (48.75, 0.37, 0.76%), Minmetals, and Xiamen tungsten five integration platform, other resources will be integrated into the five platform.

Resource tax alternative to export tax?

Chinese losing the results released by the world trade organization is not beyond all expectations, this result, rare earth industry companies are "very calm".

In 2012 March, the European Union and Japan, American respectively for Chinese on rare earth, tungsten, molybdenum export restrictions in the WTO prosecution. In March 26, 2014, the expert group to prosecute. In April 15th and 27, Chinese respectively according to America and European appeal. Rare earth export management measures China the export tax and export quotas for two.

On the 8 day of the forum, Professor Chen Weidong of the University of International Business and Economics School of law, Institute for research China part-time WTO once said, in the rare case in the case, China will face three choices. First, cancel or adjust the export tax and export quota management system. But the United States and Europe and Japan failed to adjust measures may still claim to meet the requirements Chinese ruling, both sides may DSU under Article 21.5 "executive action"; second, the maintenance of existing policies and compensation negotiations with Europe and the United States, Europe and the United States and Japan, giving more open markets in other trade sector; third, to maintain the existing policy, to enter the trade retaliation the program. "No matter what kind of choice will let China pay". Chen Weidong also suggested, if the rare earth export tax was abolished, there will likely be by increasing the resource tax to replace. "This kind of practice is in accordance with WTO, other countries have the practice of rare earth resource tax collection. In fact, this scheme has been discussed in a long time, but there is still no final results."

Since April 1, 2011, the State Council has unified adjustment of rare earth ore resource tax standard. Light rare earth including bastnaesite, monazite is 60 yuan / ton; heavy rare earth including xenotime, ion type rare earth ore is 30 yuan / ton.

President Chinese Rare Earth Industry Association Gan Yong said, since the second half of 2013, prices continued to decline. Association of rare earth price index from 202 points in August 26th, fell to 148 points in August this year, the overall market oversupply state.

China Rare Earth Industry Association Deputy Secretary General Chen Zhanheng given a set of data, with the decline in prices, foreign procurement volume increased sharply in 2012. The first half of 2014 export volume growth of 38.3%, but exports from $906000000 in 2012 36.7% decline, the current average price is lower than the 2010 average export.

Substantive progress without the reorganization and integration

Previously, the State Council explicitly Baotou Steel (Group) Company in North China, China Minmetals, aluminum company, Ganzhou, Guangdong and Xiamen rare earth rare earth tungsten (31.72, 0.17, 0.54%) are respectively led to further promote the merger and reorganization of the scheme.

8, the State Ministry of raw material industry division inspector Jia Yinsong said, at present, Baotou Rare Earth (23.95, 0.46, 1.96%), implementation of Xiamen tungsten and aluminum form rare earth group has won the Ministry for consent, according to the national "project to set up the rare earth group" six big country, the other three groups also in the second half of approved.

But a rare earth enterprise told twenty-first Century economic journalist, according to the Ministry of plan, no rare earth group national integration platform of provinces, the province of resources will be re absorption of other province platform. In response, some are integrated object represents a very "wronged".

The source said, according to the plan, in the aluminum will integrate Sichuan Province of rare earth resources in Leshan Sheng and rare earth, Guangxi and Hunan of Ganzhou rare earth rare earth resources; rare earth resources will integrate JCC; Minmetals will integrate in addition to rare earth resources in Ganzhou and other Jiangxi rare earth. "An integration platform of enterprise jointly funded the establishment of a company, the company or by the rare earth group state holding. Specific plan is still in the discussion."

"We have very good resources, why not have a rare earth platform to integrate their own? Why only six?" Part of the enterprise are integrated is not convinced.

It is also because many are the integration of enterprise is not willing to let go of local resources, leading to the current integration progress is very slow, and even a substantial lack of progress. "So few northern enterprises, Baotou integration for so many years still can not be completed, the south of the situation is more complex, more difficult to promote integration." One industry told reporters.

In addition, there is the management of rare earth enterprise that, without the introduction of capital, is also an important reason for re integration to promote. After the vote, throwing 50000000000 integrated steel, ships and photovoltaic industry three, a short period of time has been made, and the integration of rare earth industry, "so far are basically rely on administrative power to push, no capital as the link".

Crack down on black market trading should be increased

Under the internal problems outside the worry, the black market of domestic rare earth is very rampant. Jia Yinsong noted that, in 2013, Wei Songyang, the original county Party Committee Standing Committee of Anyuan County of Jiangxi Province, Ganzhou City Public Security Bureau Liao Xueyong, deputy magistrate and because rare earth exploitation of illegal crime be held liable, shows behind the black interests chain is full of interests of collusion, so this year will continue to implement the territorial supervision, strengthen the supervision of public opinion.

A rare earth industry sources told reporters twenty-first Century economic report, the industry is generally considered a WTO ruling has little effect on the industry, part of the reason also lies in the "black market" too big.

At present, because of the rare earth industry mandatory production plan and the export quota system, the birth of a large number of free in the system of the black market. "I estimate the market size may be close to half of all transactions." The source said. A number of different enterprise insiders also give similar answers.

These enterprises are generally considered not to the black market, good management, and other administrative controls are very difficult to have a large effect. Although the Ministry in a few years ago introduced a series of regulatory measures, the original intention is to crack down on black market trading, but after several years of efforts, little effect.


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