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Long-term cheap supply of rare earth
Rare earth resources are precious and are the key materials of many major weapon systems. The most remarkable function is to greatly improve the quality and performance of other products. It is known as the “gold†of industry. According to reports, the United States, Europe and other Western countries are rich in rare earth resources, but they have already stopped mining and have purchased a large amount from China. Japan only uses one-third of the total imports of rare earths for production, and the rest is used as a strategic reserve.
Unlike other countries that are reluctant to sell, China has been supplying a large amount of rare earth to the world at low cost. According to data from the Ministry of Industry and Information Technology, China's rare earth reserves account for 36% of the world's total, and the supply accounts for more than 95% of the world's total. Due to long-term disorderly mining, China's environment has been severely damaged. The mining areas are generally sandy and sandy, the farmland is deserted, the water is polluted, and the waste slag is deposited into mountains. In recent years, the government has begun to strengthen management and introduced an export quota policy.
China’s policy of restricting the export of rare earths has disrupted the good days of large-scale foreign consumption of rare earths in China, causing their strong dissatisfaction.
According to reports, as early as March 13, 2012, the United States, the European Union and Japan respectively resorted to the WTO dispute settlement mechanism on China’s export restrictions on rare earths, tungsten and molybdenum. On March 26 this year, the WTO expert group report preliminary The ruling ruled that the export management measures of the products involved in China were in violation of regulations. On April 8, the US filed an appeal against the rare earth case.
Double standards are unfair
Ignoring the current situation of China's depletion of resources and the destruction of the environment, some Western countries only consider the use of rare earths completely conveniently. This "convenience" includes not only ample quantity, but also cheap prices.
China’s export of rare earths was as low as 18 yuan per kilogram, while the international market price was as high as 1,000 dollars per kilogram. After the implementation of the quota system, China's rare earth export volume and price are no longer the appetite of the original buyers.
In fact, export restrictions have not affected the demand for rare earths in the international market. Statistics show that in 2011, China's rare earth export quotas only used 52.01%, and in 2012 it was only 48.75%. In 2013, the rare earth export quotas totaled 24,000 tons. The actual export of rare earth quotas was only 22,900 tons. The quota has not been completed. Experts pointed out that Western countries are suing China for not buying rare earths, mainly because they are too expensive and want to obtain resources at low prices. However, the rarer the rare earth resources are mined, the more expensive they will be sold.
On the issue of rare earths, China has paid more and suffered more wrongs. However, some Western countries have turned a deaf ear to it. Experts pointed out that the WTO turned a blind eye to some countries with extremely strict export controls, but violated the regulations on China's protection of the environment and the non-targeting of any country. The ruling is tantamount to forcing China to abandon its export restrictions and instead choose other methods that are more costly and less efficient to protect its resources and environment.
Protect the environment and continue to defend
In the face of unfavorable rulings, China has not retreated and chose to continue its defense to protect its homeland. According to the WTO rules, both parties can appeal within 60 days of the issuance of the report of the expert group.
Shen Danyang introduced that the case is currently at the trial stage of the Appellate Body, and China will do its best to make an appeal. Regardless of the outcome of the appeal, China's policy objectives of protecting resources and the environment will not change, and it will continue to strengthen the management of resource products and maintain fair competition in a manner consistent with WTO rules.
The industry believes that the expert group report is debatable. Liu Jingdong, director of the International Economic Law Office of the Institute of International Law of the Chinese Academy of Social Sciences, analyzed that, with regard to export taxes, the Chinese government can use the GATT (General Agreement on Tariffs and Trade) Article 20 (General Provisions on Environmental Protection) to defend. The second is about the Chinese government's export restrictions. "Some specific views have been partial and have not accepted the Chinese defense. We cannot completely negate the measures themselves because the Chinese have not achieved the expected results in the implementation of the measures. This is also unfair." Liu Jingdong said.
The more important significance of China's continued appeal is to restrict the export of rare earths, protect the Chinese environment, and protect the world environment. At the same time, the preservation of Chinese resources is also benefiting the world. Experts pointed out that if the rare earths continue to be mined uncontrollably as before, some varieties may only be mined for 20 years. After 20 years, the depletion of some varieties will be a huge damage to all mankind.
It is difficult for rare earth lawsuits to limit China’s environmental protection targets and to cherish them.
On April 17, China appealed to the organization on the World Trade Organization (WTO)'s ruling that China's rare earth export management measures were in violation. Shen Danyang, spokesman of the Ministry of Commerce, said that China will do its best to make an appeal. Regardless of the outcome of the appeal, China's policy objectives of protecting resources and the environment will not change. For a long time, many countries have adopted a strategy of protecting rare earths and protecting the local resources and environment. China has supplied more than 90% of the world's markets with only about 30% of the world's rare earths. China’s dedication has not received the gratitude it deserves. Instead, the measures to protect the environment from export have been reported to the WTO by some countries.