At 9:00 pm on March 26th, Beijing time, the WTO announced the report of the expert group on the "US, EU, Japan v. China's export management measures for rare earth, tungsten and molybdenum related products", and gave the preliminary results of the case. It is believed that China's export tax and export quota restrictions on rare earth and other products violate the WTO framework. Relevant experts said that the rationality of this ruling is open to question. In fact, it is equivalent 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. At the same time, The similar policies implemented by the United States and Europe, which have the strictest export control system in the world, turn a blind eye. Only bind other countries and do not restrain themselves. Experts pointed out that although China can not refuse to implement, it can still find ways to circumvent the circumvention and break the Western "rule discrimination."
Resource export control is facing impact
In March 2012, the United States, Japan and Europe resorted to the WTO dispute settlement mechanism for export tariffs, export quotas and export quota management and distribution measures for rare earth, tungsten and molybdenum related products in China. The two sides had no consultations. The WTO established an expert group in July of the same year. As the ruling body of the case. According to the Ministry of Commerce, on March 26 this year, the expert group report of the WTO case ruled that the export management measures of the products involved in the case were illegal.
According to the preliminary report of the expert group, the expert group recognized China's comprehensive resources and environmental protection measures for rare earths, tungsten and molybdenum, and rejected the EU's claim that the “export performance†of enterprises applying for molybdenum export quotas requires discrimination against foreign companies; However, the export tariffs, export quotas, and export quota management and distribution measures of the products involved in the case were not in conformity with the relevant WTO rules and China’s commitment to join the WTO.
In fact, this result is not surprising. In the previous case of raw material disputes, the WTO has ruled that China will cancel the export quota restrictions for nine kinds of raw materials. Experts believe that following the nine kinds of raw materials cases, China's rare earth and other products export restrictions have been arbitrarily ruled, giving Europe, Japan and other countries great benefits, as an entry point, China's strategic resource export management system may face an impact.
"After three or four months, the rare earth case will usher in the second instance, that is, the final ruling. We are seriously evaluating to decide whether to appeal." Yang Guohua, deputy director of the Treaty Law Department of the Ministry of Commerce, said.
Mining rare earth environment is destroyed
According to reports, China cut its rare earth export quota by 40% in 2010, which led to panic in developed economies and related industries that consume rare earth metals. Rare earths have an irreplaceable role in a large number of high-tech products such as solar panels, electric vehicle batteries and smart phones, and also have the title of "industrial vitamins". In 2014, the first batch of rare earth export quotas was 15,110 tons, which was 2.5% lower than the first batch of rare earth export quotas last year.
Experts pointed out that although rare earth resources are important, their development will impose a huge burden on the resources and environment. Therefore, many Western countries have adopted "protection measures" to purchase rare earths from other countries. China has long been cheap to bear the supply of more than 90% of the world's rare earths. In order to avoid the disorderly export of resources and the sustainable development of the environment, China’s export quota measures have greatly dissatisfied Western countries accustomed to low-cost Chinese resources, selectively neglecting the disorderly rare earth mining for the Chinese environment. Huge damage caused.
According to the "2014 Export License Management Catalogue", there are currently 22 kinds of goods subject to export quota license management in China. The previous ruling on the raw material dispute case has caused China to cancel the export quota measures for nine kinds of raw materials. If the relevant non-ferrous metals involved in the rare earth case are to abolish quota management, then China's non-ferrous metals sector will undoubtedly bid farewell to the "quota era". Later, we find that other rare but disorderly exports of resources may not be protected in this way.
“Even if the dust of the rare earth case is settled, there will be other games of strategic resources. Therefore, China must be prepared at the strategic level, and it must also reflect on the current measures that may be 'giving the handle' in China.†Tu Xinquan, vice president of the China WTO Research Institute, said.
Actively formulate "countermeasures"
Yang Guohua pointed out that in the report of the expert group, it recognized the original intention of protecting environmental resources in China, but thought that we used the wrong method and should not restrict exports in the export chain, but it can limit mining in the production chain.
"China is exploring the establishment of a regulatory system in line with WTO rules to protect strategic resources such as rare earths, such as the adoption of total mining restrictions, or resource taxes to manage the export of resource products." Yang Guohua said.
As early as the storm, China has raised rare earths to the national strategic reserve level, and adopted a series of measures to rectify the rare earth “black industry†chain for mining chaos and industrial defects, and some rare earth mining that does not comply with environmental protection and industrial policies. And production companies have stopped production and rectification. “China should increase the integration of the rare earth industry and strengthen environmental protection law enforcement to further promote the effective management and sustainable use of resources,†said Zhang Anwen, deputy secretary general of the China Rare Earth Society.
At the same time, in the face of Western sanctions, we can't sit still. He Weiwen, director of the China WTO Research Association, said that on the one hand, China should step up the research on strategic deployment of strategic resource protection; on the other hand, in the face of foreign “active attack†on China’s resource products, China should also actively formulate “counter- Measures, the export of crude oil or natural gas to the United States can also be filed on the basis of serious research, using the rules of the WTO to legitimately and legally seek our interests.
Resource export control is facing impact
In March 2012, the United States, Japan and Europe resorted to the WTO dispute settlement mechanism for export tariffs, export quotas and export quota management and distribution measures for rare earth, tungsten and molybdenum related products in China. The two sides had no consultations. The WTO established an expert group in July of the same year. As the ruling body of the case. According to the Ministry of Commerce, on March 26 this year, the expert group report of the WTO case ruled that the export management measures of the products involved in the case were illegal.
According to the preliminary report of the expert group, the expert group recognized China's comprehensive resources and environmental protection measures for rare earths, tungsten and molybdenum, and rejected the EU's claim that the “export performance†of enterprises applying for molybdenum export quotas requires discrimination against foreign companies; However, the export tariffs, export quotas, and export quota management and distribution measures of the products involved in the case were not in conformity with the relevant WTO rules and China’s commitment to join the WTO.
In fact, this result is not surprising. In the previous case of raw material disputes, the WTO has ruled that China will cancel the export quota restrictions for nine kinds of raw materials. Experts believe that following the nine kinds of raw materials cases, China's rare earth and other products export restrictions have been arbitrarily ruled, giving Europe, Japan and other countries great benefits, as an entry point, China's strategic resource export management system may face an impact.
"After three or four months, the rare earth case will usher in the second instance, that is, the final ruling. We are seriously evaluating to decide whether to appeal." Yang Guohua, deputy director of the Treaty Law Department of the Ministry of Commerce, said.
Mining rare earth environment is destroyed
According to reports, China cut its rare earth export quota by 40% in 2010, which led to panic in developed economies and related industries that consume rare earth metals. Rare earths have an irreplaceable role in a large number of high-tech products such as solar panels, electric vehicle batteries and smart phones, and also have the title of "industrial vitamins". In 2014, the first batch of rare earth export quotas was 15,110 tons, which was 2.5% lower than the first batch of rare earth export quotas last year.
Experts pointed out that although rare earth resources are important, their development will impose a huge burden on the resources and environment. Therefore, many Western countries have adopted "protection measures" to purchase rare earths from other countries. China has long been cheap to bear the supply of more than 90% of the world's rare earths. In order to avoid the disorderly export of resources and the sustainable development of the environment, China’s export quota measures have greatly dissatisfied Western countries accustomed to low-cost Chinese resources, selectively neglecting the disorderly rare earth mining for the Chinese environment. Huge damage caused.
According to the "2014 Export License Management Catalogue", there are currently 22 kinds of goods subject to export quota license management in China. The previous ruling on the raw material dispute case has caused China to cancel the export quota measures for nine kinds of raw materials. If the relevant non-ferrous metals involved in the rare earth case are to abolish quota management, then China's non-ferrous metals sector will undoubtedly bid farewell to the "quota era". Later, we find that other rare but disorderly exports of resources may not be protected in this way.
“Even if the dust of the rare earth case is settled, there will be other games of strategic resources. Therefore, China must be prepared at the strategic level, and it must also reflect on the current measures that may be 'giving the handle' in China.†Tu Xinquan, vice president of the China WTO Research Institute, said.
Actively formulate "countermeasures"
Yang Guohua pointed out that in the report of the expert group, it recognized the original intention of protecting environmental resources in China, but thought that we used the wrong method and should not restrict exports in the export chain, but it can limit mining in the production chain.
"China is exploring the establishment of a regulatory system in line with WTO rules to protect strategic resources such as rare earths, such as the adoption of total mining restrictions, or resource taxes to manage the export of resource products." Yang Guohua said.
As early as the storm, China has raised rare earths to the national strategic reserve level, and adopted a series of measures to rectify the rare earth “black industry†chain for mining chaos and industrial defects, and some rare earth mining that does not comply with environmental protection and industrial policies. And production companies have stopped production and rectification. “China should increase the integration of the rare earth industry and strengthen environmental protection law enforcement to further promote the effective management and sustainable use of resources,†said Zhang Anwen, deputy secretary general of the China Rare Earth Society.
At the same time, in the face of Western sanctions, we can't sit still. He Weiwen, director of the China WTO Research Association, said that on the one hand, China should step up the research on strategic deployment of strategic resource protection; on the other hand, in the face of foreign “active attack†on China’s resource products, China should also actively formulate “counter- Measures, the export of crude oil or natural gas to the United States can also be filed on the basis of serious research, using the rules of the WTO to legitimately and legally seek our interests.
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