Currency ABC Global news, China economy, Forex trading

Rare Earth Game (I)

Author: lopezol    date :2009-6-28 20:16:00

It is reported that just Europe and the United States for exports of China’s rare-earth policy on WTO litigation, it is the West to contain China forces prepared, these rare earth elements is necessary for the development of today’s high-tech resources, it is natural to form a monopoly share of the resources in the subsequent game and the world’s resources is essential to occupy the position, and the value of these resources with the technology will become increasingly important as new technologies and new materials in the context of development, many of the original main bulk commodities can be replaced, but the rare and rare earth elements can not be replaced. China took control of the resources, the West stuck around a lot of high-tech applications, after the intense game must be unprecedented, and now the WTO litigation is just beginning to be exposed to the tip of the iceberg.

China Rare Earth occupies a number of the world: the world’s total reserves of the first reserves, especially in the military field and the relative importance of the shortage of heavy rare earth; the first production scale, production of rare earth in China in 2005 accounted for 96 of the world %; the world’s exports, 60 percent of China’s production for export, international trade, exports accounted for more than 63 percent, and China is the world’s only supply a large number of different levels, different species of rare earth products. It can be said that China is in the open the door to the world’s supply costs.

We can be found in China the ratio of rare earth in the world, recently said that more than 85%, but recently has been 58 percent, we can also say that we are an absolute majority of the world, but we have the mathematical knowledge of primary and secondary school students can calculate the , before the rest of the world is less than 15%, 42% of it is basically three times more than the proportion in the near future what the world did not find significant rare earth resources, mining and other countries of the world’s imports from China is basically a case of non-mining , which is the world’s reserves into the denominator of the original one-third of the world’s total reserves by almost two-thirds of the exploitation of other countries in the world did not, which is China’s rare earth reserves, has been the exploitation of two-thirds, and the outflow, it is reported that China’s production capacity is 200,000 tons, more than double the world’s total demand. Rare two-thirds of our resources are lost, does that mean we should not be alarmed it? This outflow is no longer allowed to continue.

In today’s world in a nuclear war and no one dares to fight the background, the economic war should be the mainstream of the world, we are concerned about the commanding heights of the world financial monetary and exchange rate game, we should see this side of the game is more the nature of resources battle game, each time the world behind the war are re-divided into the possession of the blueprint for the world’s resources, the Western world for our plundering of the layout of rare earth resources is already beginning, and most of China’s rare earth reserves by the predatory exploitation and the loss of overseas Running out of Time is that they achieved great results, and limitations of our rare-earth policy carried out such a consistent WTO litigation, especially in the beginning of the Ming robbery, and against this background that the West there is a trade protectionism the rise during the crisis to trade disputes in the future expansion of China’s export restrictions, so that these countries of their production capacity could be released. At the same time, China has 2 trillion in foreign reserves and these reserves are subject to restrictions on the mobility of the bonds rather than cash, the future after legal proceedings have nothing to worry about the implementation, as long as the U.S. government approved such a decision, you direct the implementation of U.S. government bonds on the it.

We recognize the importance of the rare earth elements, rare earth to carry out the duties and restrictions on exports in violation of WTO is indeed the suspect, the other developed WTO rules, the other side of this understanding of the rules of the game well into their class-action suit, not to mention the relevant WTO institutions they control whether a fair trial, a fair trial even if they also take advantage of the rules and seize your hands and feet, this process continues, we can have an interest is very slim. We believe that there is no question of their own, you can completely take the initiative in the WTO, the main reason for our experts is:

First, the United Nations General Assembly adopted in 1974 to “create a new international economic order the Declaration” clearly announced that “each country’s own natural resources and all economic activities have a full permanent sovereignty. In order to defend these resources, each country has the right to appropriate to their circumstances to take the means to develop their own resources and their effective control of … … should not have suffered any economic, political or any other form of coercion, which can not be free and full exercise of this inalienable right. ”

Second, WTO trade rules to restrict imports were mainly opposed to the closure of market, there was no requirement not to restrict exports of national measures. In fact, the United States on limiting the number of high-tech exports to China, Canada Emerald export restrictions, Japan and even renewable also limit the export of timber.

Third, in 2001, when China’s accession to the WTO signed the “Protocol’s entry into the WTO,” promised the abolition of export products applies to all taxes and fees, but there are 84 tariff lines of goods not listed, including yellow phosphorus, antimony, fluorspar, indium, tin, tungsten and zinc products.

However, we should see that our athletes are not experts but movement theorists, the low level of game play, game of life and death action is the need of athletes, sports can help athletes theorist is not the level of competition. Our experts for the rare earth WTO proceedings set out the reasons for this, if that is used to pacify the people, we can understand that, if the day is with the United States and Europe to conduct a trial of strength throughout the Western world, you are not all the Western elites have as a pediatrician has been? And we join the WTO only a few years, the game together we Pediatrics also similar to the Europe and the United States in the WTO are prepared, we can not think about it?

Before we have a lot of “assumptions”, such as the dumping issue, we initially did not expect other people on a “market economy country that” unless they find an alternative country, it is possible as we will be able to dumping, and whether they would be able to select which country the issue of engaging in a lot of the right to freedom of the volume of the CD, always select the country for their benefit. There are our exports of textiles and footwear, we have “taken for granted: that the WTO’s accession to the post-quota does not exist, the result is that people use for their own industries against things, etc., quota and out. So we have this litigation, it should be recognized that the other party in the contract even where the buried mine Let us worry about it! and to those of us not to mention their WTO experts in the negotiations after the trap dug by others thinking they have is not easy to see, even see the face of accountability to be carried out, but also on the cover to cover, and finally the West exaggerated injustice. digression here to say, we joined the WTO there is a word called: China to join the WTO to pay an unprecedented effort, these efforts for China’s all! and the meaning behind this statement is made in China to WTO concessions only China’s concessions can not be also asked him to give the country! This is because China’s accession to WTO has more than concessions Japan, South Korea, India! so do not say that we have not eaten pork for the WTO have not yet seen the pig race, in fact, is not too pigsties into the, I do not know the dirty pig, only the blast pepper.Add pork to eat and how would know what the pork should taste!

We want our number of reasons, the first treaty of the United Nations is not a WTO agreement, if things can replace the United Nations WTO rules, then we are permanent members of the United Nations, why took so much effort to join the WTO? So here is the first in the proceedings the application of the law, a member of the United Nations and the WTO itself is not a member, so that the application of the provisions of the United Nations to move out to, in fact, it is legal lie! Here we say a few words about the United Nations and the United Nations specialized agencies of the legal relationship, in accordance with relevant laws and regulations of the United Nations, the United Nations specialized agencies in the United Nations system is the intrinsic specific areas of expertise of the organizations engaged in international activities. In terms of these international organizations or organizations in the activities are independent, they are not a subsidiary body of the United Nations, but is based on agreements with the United Nations to establish a special legal relationship only. The United Nations and the United Nations specialized agencies is based on the legal relationship between the United Nations and specialized agencies established by the agreement, the United Nations to recognize the United Nations specialized agencies of the terms of reference to recognize the United Nations specialized agencies have the right to submit its recommendations and coordinate their activities, the specialized agencies to report regularly to the United Nations report on the work of the two sides to each other reciprocal representation at meetings, but no voting rights, exchange of information and documents to each other and coordinated with personnel, budgetary and financial arrangements. By the United Nations Economic and Social Council is responsible for coordinating the United Nations and the specialized agencies. United Nations specialized agencies have an independent legal status, the United Nations specialized agencies have their own Member States, Associate Member States and observers, is not a member of the United Nations specialized agencies, of course, is a member. Specialized agencies have their own Charter of the Organization, organ system, rules of procedure and sources of funding. Its resolution is not subject to the approval of the United Nations. WTO is one of the United Nations specialized agencies, in accordance with the joint United Nations and the specialized agencies have the legal relationship, the United Nations for the rights of WTO is to make recommendations and coordinate their activities, only recommendations, which allow you to see our first far-fetched reasons Where is the.

We think we can rely on to see the second and third, we need to be aware of the different articles of the Treaty on the legal conflicts that may occur, although we focus on the text of these articles is used for statements in our favor, but our opponents We may also neglected to join such a statement for the local conflict, such conflict is not different from the text directly, but rather occurred in the evolution of all laws, contracts traps are normally such a start to able to cover enough. WTO is such a document the number of 10,000, your negotiator, everyone can not be experts in all aspects, you do not know how there are always local, and this was true, because the other side have enough experience, you are in negotiations in the analysis and they already know! For example, these conflicts is that what you are going to apply to other practices, case, etc., of these cases, practice or agreement may be used prior to WTO matters, all of which you may not know, our more than ten years of negotiations, we have experts in the reform after leaving the country open to learn, even people without reservation for you, but also only last for 30 years, and for hundreds of years they have accumulated things, you could not finish school, and to recognize their own lack of progress and advancement. And specifically to China this litigation, the handle should be more fair, non-tariff barriers, subsidies and so on, are you a permit and quota, whether the act is an open market? Private enterprises have equal rights? If not then you may be in violation of certain provisions of the WTO; your tariffs for Rare Earth in China but you on the use of rare earth products are the same tariffs? If not, the cost of various Chinese and foreign enterprises, you have to the Chinese companies suspected of subsidies, and so on improper competition, in accordance with the WTO’s basic principles: the principle of non-discriminatory (most-favored-nation principle, the principle of national treatment), the principle of transparency, free trade principles and the principle of fair competition, we are not the rare-earth policy is the unspoken rules of open and transparent it? Between state-owned enterprises and private enterprises in free trade and fair competition it? Private and state-owned enterprises and non-discriminatory national treatment is it? WTO’s basic principle is the highest purpose of WTO member countries and in all must recognize and comply with, and reflect the provisions of these principles and practices more so for China, the problems faced by litigation than you literally understand the complex much, and once with the existence of conflict of laws, the judge discretion to come, in the unanimous opposition of the Western world to China, such as the existence of discretionary power, basically can be as detrimental to the understanding of China. Replaced by ordinary people can understand that, that is, both the public and said that both the public and justify the things right, such a thing on the big powers to see who has the final say in who we friction up to WTO quotas and non-”market economy” countries the problem is not generated by it? Many of our local market for foreign investors than economic matters but also the market economy, people do not appreciate an advantage, that is to say you do not belong to a market economy, you do not recognize the market economy status. Directed at the West on such a high-profile litigation, it is likely behind the trap dug long ago, and there is no special occasion, since no one will discuss both sides of our state-owned enterprises and private enterprises is not the same market treatment of the old problems, etc. the West will find more trouble? Therefore, we really should not be taken lightly. But we have just heard that the Ministry of Finance has reduced the relevant tariffs, has not played on the urine of the pants, we know that one issue.

But at the same time we should also recognize that this rule is available, I bought mine in Africa to write a sequel in mind, the sun about the wisdom of the African chiefs, these chiefs and the West African colonial history, the wisdom of the game, we can learn from the Chinese people is also the , the resources of these countries in Africa are the property of the colonists, and African countries to independence, the sovereign state of the original and the Western powers may have unequal treaties, the treaty should be harsh than the WTO, but the African chiefs to protect their resources has its own unique place, we should also learn from their experience of the rare earth to protect our resources and our resources, the status of rare earth and the former colonial powers in Africa there are many similar places, many of our property business has been rare-earth is a foreigner, or is the original owner of the Chinese immigrants or foreign citizenship status, we introduced a lot of promises to foreign investors even more than the unequal treaties, for these situations, we do need to study African history and the colonial chiefs game accumulated wisdom, how to make good use of the rules of the international game for us, do not want to of course! The purpose of my writing this article is to expose not only the issue is more important to be thinking about solving problems, we are now the main part of the article should be started.

The first is on the procedure, to avoid and evade the issue of litigation is a focus on the import of all the countries of China rare earth or rare earth in China imports accounted for a high proportion of their country, or most of them to use as raw materials are rare earth the country of origin of a variety of products in China, they should be regarded as a major dispute with the interests of the association, in the law should be avoided, and the rare earth in China is almost all over the world to buy, so there is no significant relationship between the interests of the neutral and ad litem judges very difficult, if not avoid them, then China should take part in the assignment of judges. Manipulation of this issue in the WTO is a small number of Western developed countries, but similar issues with other WTO member countries the majority of interest is also worried about the disqualification of such proceedings do not affect the interests of other countries, but also in violation of the law the fundamental principle of procedural law, the trial is the first trial to have the status of a neutral trial, this issue to the WTO to vote on all countries, is beneficial for China, and the proceedings for the use of time delay and entanglement, in itself, is a types of litigation techniques, for China’s actual policies have been implemented, such delaying tactics are very favorable.

In the entity, we have more to acts of domestic efforts, the development of WTO rules can not be under the jurisdiction of the domestic enterprises is the same individual, not with the international aspect of the application of the law occurred, we can through legal regulations and policies, in a unified national action, and our domestic law in the domestic affairs is superior to the effectiveness of international treaties. WTO rules must be consistent with domestic law with no applicable international treaties, national priorities, this is the issue of national sovereignty, we then the unequal treaties that the effectiveness of the treaty in domestic law to override, and now we will never return to the original. The sovereignty of all the non-colonial countries are higher than the domestic legal effect to international treaties. Only two different laws are in conflict, only the use of international treaties, the law of your home for the benefit of the people you directly applicable law, you can say no, but our own law is to protect our interests , there must be a manifestation of national treatment.

What we need is to stop the price of rare earth is a land price, it is necessary to raise the price, so value for money, so that the same rare-earth as a precious metals gold and silver, we welcome foreigners to buy, but you can not be cheap bought. China’s rare earth and iron and steel is the same, industry is very fragmented, and small capital companies, over the vicious competition, the monopoly of the international giant to Hello therefore no price, they divide up the collapse of our work together, down to our selling price, They were very clear about China’s rare earth companies must dispose of the product as soon as possible to recover the funds, which you can not have the pricing power in this industry, it is necessary to break the game such as this do not, many of us say that this is our decision to market conditions, and there is no brain to find ways to really on that approach has not it? That if such people are more likely to be non-Chinese rare earth prices vested interests, for such cases there are actually many ways and can learn from the experience, the game the rest of the world are some form of national control the market to completed, China’s rare earth is also the need for strong institutions control the market a monopoly to a monopoly to deal with outside of the monopoly can.

China Rare Earth to raise the price of a good way to ultra-high prices of the country acquired a national strategic reserve, after the purchase of a deposit, and the national open land, the number of how much, as a national strategic reserve, stored in there is to hoarding, After the high-tech as a strategic resource, RE should be more critical than the iron and steel, because a lot of steel on Earth, but whether or not cost-effective production, China has been the exploitation of the iron ore grade of 10%, and such a time as long as adequate reserves of rare earth, is certainly a long-term make profits, and deposited a few years ago I know enough Japanese to use the rare earth 100 years, but the recent increase in the amount of high-tech, the actual number of years to meet the need to reduce the foreign reserves to reduce the security, resource pressures are the key . To do so as Emperor Qianlong was the acquisition of Rosewood, and finally to the end of the Qing Dynasty Rosewood high price to the value of a pair of cabinets more than one yard in the Rosewood collection is now the case of heat does not rise with the history of the relative price of a comparable level. For scarce resources such as rare earth, 10 times the prices should be no problem, as in the pre-crisis copper, iron ore prices, etc. which is not up several times? The concentration of these resources is far less than our rare earth, rare-earth prices, therefore there is no problem so. We do in the Chinese market to buy things in China, countries around the world to speak.

China’s rare earth products in particular, neodymium oxide, terbium oxide, dysprosium oxide, europium oxide prices have long been controlled by foreign businessmen. Strength of a number of foreign traders and companies when a large number of low-price purchase of rare earth products in China, when prices stop procurement, the use of inventory, to be once again re-price when purchased. This has forced domestic enterprises to compete the sale price, because Chinese enterprises are funding a very tight chain, our country’s macro-control has also kept tight-money policy, but the rare earth industry is different from the real estate, real estate may there is need to control the bubble must not be allowed to control the result is that there is no price down by China’s low-cost resources to the foreign sales. Foreign buyers are large, only a few, and we are selling more than 100 enterprises. From 1990 to 2005, the export volume of rare earth in China increased by nearly 10 times, but the average price was down to 64% of the original price. Therefore, we need to have state-sponsored enterprises to protect our markets and fundamental interests.

We always thought that a lot of our resources, but even if the advantages of our tungsten and rare earth resources, but also have the resources to pressure depletion. Wolframite China has almost been mined-out, only the exploitation of scheelite can be about 20 years, rare earth reserves of the world from the previous 85% to 58% now; in accordance with China Nonferrous Metal Industry Association, given the data, such as According to our present level of exploitation, may take 16 years, molybdenum, zinc may take 10 years. China’s low-cost resources, procurement of all countries in the world to earn the interest of our resources, the United States of rare earth ore and molybdenum ore reserves as a strategic resource of the archive. Such a tense situation, we must have enough attention, the country’s strategic reserve, the establishment is not a simple response to this criticism in Europe and America, but in fact has reached a critical state, two-thirds of our reserves of rare earth has been the loss of , and then to develop, as soon as our resources are scarce, and our opponents will be able to tighten the price of high price of our economic development of the throat.

The second rare-earth prices through improper means approach is the financial support to mortgage to the bank of rare earth can be 100 percent in accordance with the price of the value of loans, the price of rare earth or the National Bank on the acquisition of bad debts, the bank is very safe, Rare Earth can even pledge, as a bank safe-deposit boxes into a single separation purification smelting of rare earth elements, the value of gold is a precious metal, other than mortgage banking products is much easier to operate, can be directly deposited in the bank safe key to both custody, and for bulk commodities such as iron and steel, how it is difficult to store. This can be solved a lot of rare-earth problem of shortage of capital, companies worry about money, of course, will not hurry a sale.

This will cause the price of social expectations, the Chinese people in society were being hoarded, and banks hoarding capital to support, enterprises will be Hard Trading in a Dream, and financial capacity Hard Trading in a Dream. Indian banks such as bank notes to ease their own economic crisis in China is a very good way. The establishment of a national strategic reserve bank to bank funds for stock mortgage is actually a disguised form into the mobility of society, in times of economic crisis for the national economy the eager things should be. Here also do not need foreign exchange, money like China and India, and such infrastructure projects than stimulating domestic demand, and the recycling infrastructure is yet to be determined, only the price of rare earth resources applications, recovery and there is certainly no problem with big money.