China’s export regulations of its rare earths is up for deliberation next week by the World Trade Organization (WTO). China stands by claims and support of experts that said export curbs adhere to the rules set by the international global body.
“According to the principles of the WTO, a nation has the right to restrict the export of scarce resources when its reserves are diminishing or when the resource harms the environment. Rare earths is such kind of resource,” Han Xiaoping, Chief Information Officer of China5e.com, a Chinese internet portal for energy information, told CRIENGLISH.com.
In late June, the three world leaders the US, European Union and Japan requested the world body to form a dispute settlement panel following unsatisfying talks with China, as a result of a complaint filed in March in which they claimed the second largest economy was unfairly limiting exports of rare earth materials.
Much earlier in mid-June, China released a white paper that said it will be imposing stricter standards and regulations in its rare earths mining to salvage what remained of its rare earths reserves. Although feeding more than 95 per cent of the world’s demand for rare earths, China’s actual reserves of the precious metals are only 23 per cent of the world’s total.
Han Xiaoping believed the acts of the three global economic leaders tantamount to bullying China so it will lower its prices for rare earth.
The current rare earths problem would not be such a nuisance if the other countries speed up their exploitation of rare earths and try to find new rare earth reserves, “so as to help maintain the stability and diversity of the global rare earth market.”
“The point is why other countries do not exploit their rare earth resources, rather than how China can continue to supply the global market. China can uphold this principle even if the issue has to be settled by the WTO. If pushed further, we can make various domestic regulations to curb excessive mining of rare earth and the environmental pollution caused by rare earth mining.”
Stock analyst Jeb Handwerger, in an interview with the Critical Metals Report, echoed Han Xiaoping’s observations.
“China is saying to the world that it needs the juniors-and that is the truth. There won’t be access forever to an abundant supply of cheap heavy rare earth elements (HREE). China is saying, ‘We’ll help you. We’ll help you get the juniors. We’ll give you technology and expertise,’” Handwerger said.
“That’s really what it is going to come down to. Twenty years ago, these metals were not as scarce. Outside of China, there is little or no domestic rare earth elements supply being produced today, and it appears we are still years away from producing HREEs.”
