WTO Rules on China’s Rare Earth Exports
World Trade Organization (WTO) ruled recently that China’s rare earth elements (REE) export restrictions violate international trade regulations.
- China has a 90-percent stranglehold on the bulk of supply and a 70-percent share of global consumption.
- China is looking at removing REE export taxes, which were levied at a rate of 15 to 20 percent.
- The new tax regime “will force Chinese rare earth producers to raise prices towards levels outside China.”
- The impact in the short term could be significant, as domestic prices are generally 36 percent lower than FOB prices.
- Should China manage to clean up its smaller mines and consolidate its REE industry, the country could solve the current overcapacity situation.
By Vivien Diniz of Resource Investing News
C&ENews ran a story back in the ’80s or ’90s saying that Richard Blum was/has established a firm in SF representing Chinese rare earth metals. He was dealing with Chinese companies before that time, as I recall the article claimed, and had established a working relationship with the Chinese government. Then entered his wife Senator Diane Feinstein in seeing to it that US manufacturers of rare earth metals were effectively shut down by our beloved EPA. Since then we have been beholding to the Chinese for our rare earth metals. What I do not remember is the name of Blum’s company, I think he had a Chinese partner as well, nor do I know if he still owns that distributorship. I do think that this would be a natural conflict of interest on DiFi’s part and a great subject for some enterprising journalist.