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0 White Paper on the Business Environment in China
products and electronics. As the world’s biggest (NDRC). China has always supported the multilateral
supplier of such materials, China has always been trade system and economic globalization and
upholding the principles of openness, coordination promoted the development of the rare earth industry
and sharing in developing its rare earth industry. in an open, collaborative and shared approach, she
While meeting domestic demands is a priority, China said. “The country has the largest reserves of rare
has traditionally tried to satisfy global demand for earth materials and is the world’s top rare earth
rare earths as long as they are used for legitimate resources producer. China is willing to meet other
purposes. “We are happy to see that the rare earth countries’ legitimate needs for development by
resources and related materials can be used in providing rare earth resources and products, but we
making all kinds of advanced products that help are firmly opposed to practices of some countries
better satisfy the demand for a good life of people of ignoring global trade rules and destroying the
from around the world,” said one official with the world’s industrial chain.” She said the NDRC is
National Development and Reform Commission in mulling measures to fully tap the special value of
June 2019. According to the US Geological Survey, rare earth materials as strategic resources. Efforts
from 2014 to 2017 the United States imported 80 will be made to tighten regulation and supervision
percent of its rare earth compounds and metals on illegal production, strengthen environmental
from China. Along with the technological revolution restoration and advance green development in
and industrial evolution, rare earths are expected to rare earth industry, as well as support enterprises
be applied in more areas, and their strategic value in stepping up protection of intellectual property,
will become more prominent. China seems to be Meng added (China Strongly).
ready to play this card if necessary (US Risks).
Most of the country’s rare earth products are
China regulates its rare-earth industry by forming middle- and low-end products, and the value of the
six large rare-earth producing corporations and resource has been far from being fully exploited.
issuing annual export quotas. China announced the To remedy the situation, market regulators began
first batch of rare earth and tungsten mining output to strengthen all-round supervision of the rare
quotas for 2019 in March of that year. The first batch earth industry in June 2019 by straightening out the
of quota for rare earth output totaled over roughly problems in production, cracking down on illegal
66,140 US tons, about half the quota set for 2018. Of practices, and wiping out unauthorized production
the total, 55,500 US tons were allocated for light rare and smuggling. Regulators also claimed they wanted
earth output, with 10,555 US tons for medium and to tighten export control and the establishment
heavy rare earth metals. The first batch of mining of a full-process traceability and review system for
output quota for tungsten was set at 54,934 US tons rare earth export. Several experts suggested the
(Fiscal revenue). application of leading technologies and high-end
utilization should be supported, while industrial
According to Xinhua News Agency, in May 2019, transformation from extensive expansion based on
China’s rare earth export dropped by 16 percent the resource consumption to innovation-powered
month-on-month. Ministry of Commerce (MOFCOM) development should be quickened, experts
spokesman said the decline of rare earth export is suggested. The NDRC said it would also collaborate
not the result of China’s tighter regulations because with other relevant departments to take effective
China does not take any new policies and regulations measures to optimize the industry’s development
on rare earth trade. The fluctuation of rare earth through management innovation, improve industrial
export is subject to the market (Yu and Cheng). The structure, facilitate the use of advanced science and
next month, China’s economic planner expressed technology, effectively protect the resource, ensure
strong opposition to attempts to use products orderly production and make full use of the special
made with China’s rare earth resources against the value of the strategic resource (China’s economic
country’s development. “We strongly oppose any planner).
attempt to use products made with China’s rare
earth resources to curb and suppress the country’s NDRC and MOFCOM released its revised negative
development,” said Meng Wei, spokesperson with lists in June 2019 for foreign investment market
the National Development and Reform Commission access that came into force the next month. In regard
216
products and electronics. As the world’s biggest (NDRC). China has always supported the multilateral
supplier of such materials, China has always been trade system and economic globalization and
upholding the principles of openness, coordination promoted the development of the rare earth industry
and sharing in developing its rare earth industry. in an open, collaborative and shared approach, she
While meeting domestic demands is a priority, China said. “The country has the largest reserves of rare
has traditionally tried to satisfy global demand for earth materials and is the world’s top rare earth
rare earths as long as they are used for legitimate resources producer. China is willing to meet other
purposes. “We are happy to see that the rare earth countries’ legitimate needs for development by
resources and related materials can be used in providing rare earth resources and products, but we
making all kinds of advanced products that help are firmly opposed to practices of some countries
better satisfy the demand for a good life of people of ignoring global trade rules and destroying the
from around the world,” said one official with the world’s industrial chain.” She said the NDRC is
National Development and Reform Commission in mulling measures to fully tap the special value of
June 2019. According to the US Geological Survey, rare earth materials as strategic resources. Efforts
from 2014 to 2017 the United States imported 80 will be made to tighten regulation and supervision
percent of its rare earth compounds and metals on illegal production, strengthen environmental
from China. Along with the technological revolution restoration and advance green development in
and industrial evolution, rare earths are expected to rare earth industry, as well as support enterprises
be applied in more areas, and their strategic value in stepping up protection of intellectual property,
will become more prominent. China seems to be Meng added (China Strongly).
ready to play this card if necessary (US Risks).
Most of the country’s rare earth products are
China regulates its rare-earth industry by forming middle- and low-end products, and the value of the
six large rare-earth producing corporations and resource has been far from being fully exploited.
issuing annual export quotas. China announced the To remedy the situation, market regulators began
first batch of rare earth and tungsten mining output to strengthen all-round supervision of the rare
quotas for 2019 in March of that year. The first batch earth industry in June 2019 by straightening out the
of quota for rare earth output totaled over roughly problems in production, cracking down on illegal
66,140 US tons, about half the quota set for 2018. Of practices, and wiping out unauthorized production
the total, 55,500 US tons were allocated for light rare and smuggling. Regulators also claimed they wanted
earth output, with 10,555 US tons for medium and to tighten export control and the establishment
heavy rare earth metals. The first batch of mining of a full-process traceability and review system for
output quota for tungsten was set at 54,934 US tons rare earth export. Several experts suggested the
(Fiscal revenue). application of leading technologies and high-end
utilization should be supported, while industrial
According to Xinhua News Agency, in May 2019, transformation from extensive expansion based on
China’s rare earth export dropped by 16 percent the resource consumption to innovation-powered
month-on-month. Ministry of Commerce (MOFCOM) development should be quickened, experts
spokesman said the decline of rare earth export is suggested. The NDRC said it would also collaborate
not the result of China’s tighter regulations because with other relevant departments to take effective
China does not take any new policies and regulations measures to optimize the industry’s development
on rare earth trade. The fluctuation of rare earth through management innovation, improve industrial
export is subject to the market (Yu and Cheng). The structure, facilitate the use of advanced science and
next month, China’s economic planner expressed technology, effectively protect the resource, ensure
strong opposition to attempts to use products orderly production and make full use of the special
made with China’s rare earth resources against the value of the strategic resource (China’s economic
country’s development. “We strongly oppose any planner).
attempt to use products made with China’s rare
earth resources to curb and suppress the country’s NDRC and MOFCOM released its revised negative
development,” said Meng Wei, spokesperson with lists in June 2019 for foreign investment market
the National Development and Reform Commission access that came into force the next month. In regard
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