Why does China restrict rare earth mining?

China is looking for measures to control and restrict the export of precious and rare resources for sustainable development.

China has a good reason to limit rare earth exports

China ' People ' newspaper reports that the protection of natural resources and the environment is the benefit of each nation. In the past 10 years, China's rare earth exports have been carried out in a tightly controlled state, resulting in low prices and environmental destruction. Therefore, the reorganization of the rare earth export order is a reasonable policy to protect self-interest, China has a good reason to limit the export of rare earth.

However, this issue has been criticized by importers. Last week, the WTO's dispute settlement body issued to member countries a report of the expert group on EU and US accusations that China restricted exports of nine types of materials.

Picture 1 of Why does China restrict rare earth mining?
Map of China's mineral resource allocation

According to the report, the restriction of export of 9 kinds of Chinese materials is inconsistent with WTO rules. Market experts said that, after 'stoning' successfully, EU and US countries will likely focus on the next target of rare earth.

Reasons for restrictions on China's rare earth exports are not recognized, there are two reasons:

Firstly, Japan and the US . have relied on Chinese rare earth goods. Before 1986, America's rare earth production ranked first in the world, France ranked second. But China's rare earths are huge and cheap, making developed countries shut down their mines. They are not without resources, but they have a habit of "depriving" Chinese cheap resources. China accounts for 30% of the world's rare earth supply, but exports account for 90% of the world.

Secondly, China was too dependent on administrative measures in regulating the rare earth export market, taking legal and tax measures seriously. Such market control is clearly reflected in the real estate sector. This common practice could be effective in the country, but proved very ' forced ' when persuading world market experts.

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Chinese rare earth is used in magnets of modern electrical equipment.

China thinks that they don't do "too much" .

China said that they did not "do too much " compared to restricting exports of rare and high-tech resources of countries. Chinese Ministry of Commerce spokesman Yao Kien said that China introduced a rare earth export quota based on WTO rules and had a sufficient domestic legal basis, namely ' Mineral Resources Law Production ' and' Foreign Trade Law '.

China has introduced management measures that not only aim to export rare earths, but also carry out all three stages together, including mining, production and export, and synchronous management of production and consumption. domestic and export of primary rare earth products.

The group of arbitration experts said that in order to limit rare earth exports, China could not provide evidence to prove that this issue was carried out in conjunction with the control of production and consumption of raw material resources. in the country for the purpose of protecting resources. That means that, in line with export restrictions, China does not restrict domestic production.

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China has the world's largest reserves of rare earths.

China will certainly not continue to implement policies of innocent exploitation of domestic resources, so the lack of export restrictions of precious and rare resources such as rare earth is considered an inevitable measure. . In line with the persistence of this policy, it is necessary for China to implement countermeasures in accordance with international practice, appeal to relevant organizations.

At the same time, in order to affirm China's determination to protect the environment, China controls domestic manufacturing enterprises on costs for environmental protection, tax collection, using measures that are really beneficial to the environment, from then on. turning ' export restrictions' (shells) into controlling the order, respecting the environment, protecting market valuation rights (cores). Thereby, businesses will be screened naturally, increase market efficiency and help improve the environment.

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China said that they did not "do too much" compared to restricting exports of rare and high-tech resources of countries.

In summary, in order to restore market order, gain a voice in rare earth exports, break out of the construction of low-cost factories, reworking rare earth resources is the first step and must be continue. However, it is necessary to apply market-based measures rather than administrative measures in order to prevent others from borrowering.

China does not want to return to the old way of building low-cost commodity factories, so China has been criticized as a low-wage, poor environment, and has been asked to export. export a large amount of cheap resources.

This shows that countries that criticize China have not really considered China's development future.