Rare Earth Game (II)

2
Jul/090
e information 1-6 months in 2007, the National Scheelite yield 40,309 tons (equivalent to the volume of WO365%, the same below). 2007 January to June, a total export volume of tungsten metal products 15,343.8 tons and exports 535 million U.S. dollars. This estimate of the annual exports of tungsten is about one billion U.S. dollars; I query the network to the rare-earth price of 99.9% purity cerium oxide is 18 yuan / kg, the highest selling over the past 30 yuan / kg; oxide Nd 80 Yuan / kg, and sold over the past 90-100 yuan / kg; yttria 57 yuan / kg, sold over the past 100-200 yuan / kg. The last century of rare earth chloride, sold the 80’s the price in Japan is 15 yuan / kg, but now sold 7.5 yuan / kg; Europium oxide sold over the past seven dollars / kg, now selling only two dollars / kg. And the processing capacity of rare earth is naturally 200,000 tons, an average of less than 5% of rare earth compounds, a year after the purification of less than 10,000 tons of rare earth to rare earth high-priced 100 U.S. dollars a kilogram, with the total market value of one billion U.S. dollars is , together with our tungsten exports, that is two billion U.S. dollars, for we had to rely on China’s foreign exchange shortage of resources in exchange for the sale of foreign exchange, so a little bit of interest now for our 2 trillion of foreign exchange reserves, it is no big deal, the future world urgently needed price increases 100 times, resulting in a 200 billion dollar market, the market and the bulk commodities of copper, iron and so comparable, so nearly 20 kinds of rare strategic metals market is only this point, however, the global high-tech industry the added value is also what is not, therefore, the shortage of resources is a huge rise in the value space, the price is not high is not the parties to the transaction, such as the strength of pricing power, China could not afford to go on to be predatory .
We also noted here that the rare earth is different from the iron and steel, petroleum, nonferrous metals and other bulk commodities, not only low-cost storage, and even if many times the price of the current national production of all global reserves and there was no problem with these Rare Earth will be the international currency market, foreign exchange reserves can be comparable to, if we think about oil reserves, one per cent of our foreign exchange reserves into barrels of oil is on, you do not have local storage and the cost of storage This will let you practice economy viable. Strategic reserves of rare earth, etc. It is easy for storage, with the acquisition of large-scale Chinese prices go up after the performance of rare-earth hard currency will become better and better, would produce a certain effect of foreign exchange reserves. The same price of their procurement priority is the embodiment of national treatment, while the country has super-national treatment, the acquisition of priority countries, many foreign countries is harder, and the acquisition of high-priced country, where open land outside of the higher prices will certainly, I do not limit the you buy and export, but we are the market price of the cheapest you can not buy.
For rare earth, such as China’s financial support, in fact, can be taken further financial innovation, as for precious metals such as rare earth, we can be seen as a currency or currency of the collateral, in the past the gold and silver is now the bonds, we the rare-earth metals as a currency of many of the collateral to the issuance of currency, such a policy in China as a result of such a rare earth resources, so that China can adopt such a policy will not be like other countries in the world because it had the right to the country’s financial to China. And the rare earth as the monetary equivalent of the advantage is that other countries, regardless of what kind of economic regulation and tightening of liquidity, rare-earth industry is not going to put tighter liquidity and low-cost funds to sell to foreigners, and the economic crisis to social capital will also accumulation of rare earth to hedge, so that the prices of rare earth, as long as the price of rare earth line up, that is, holders of the resources of the entire Chinese society and good fortune, as the currency collateral for the man-made attributes to the rare earth in money, to find the rare earth the new applications, so that we can digest the enormous and excessive production capacity of rare earth, as the world’s gold production in the same situation; while such a policy, given the currency of rare earth properties, equivalent to inject liquidity to society, than the country’s pro-active fiscal policy or beneficial, because of financial bonds to repay these loans. China’s central bank as the mortgage money and a large number of rare earth national collection is China’s strategic reserves, future needs, such as the gold standard of bankruptcy can be like, the abolition of the currency peg RE it. Financial means are often the most easily without fighting enemy soldiers, but it requires the coordination of China’s domestic balance of the various departments and vested interests, it is very difficult to achieve, but in the face of the fundamental interests of the country really should be the same as the overall war fighting . Resources of international war, the currency war, financial war of nature is in fact the same, is to share the resources of his country, re-allocation of resources into a blueprint for the world, so our game and the rare-earth financial and monetary integration, it is very reasonable, at the same time and financial integration such that we are very beneficial, because we control the rare earth has become a reserve currency countries, and countries do not have enough of rare earth resources, it is impossible to attack our financial systems of rare earth.
In addition to the need to raise prices is to increase the cost of enterprises, many Chinese enterprises are the rare-earth mining damage to the environment, we need to increase the environmental review and punishment for these environmental protection measures, but also what foreign countries can not say. Rare-earth mining is a serious environmental problems, China is lagging behind the exploitation of the rare-earth, many of the original in the sense that the hole in the hills, rare earth excavated in the clay together, and clay with oxalic acid to extract the chemical reaction occurred in the primary rare earth, would like to about 95% of other material to use acid to dissolve only be 5% of the rare earth content, what kind of pollution. As a result, the soil hills almost hollowed out, resulting in serious soil erosion and destruction of surface vegetation. Large-scale illegal exploitation of rare-earth mine, the ammonium nitrate, sulfuric acid and other highly toxic chemical medicine washed mine waste water without any treatment, directly into the river a lot. From all mining points to see a large number of machines in a few hills full swing, Castle into a large yellow slope, large trees have been felled, the washing down the mountain pond of chemicals such as ammonium sulfate (heard there are other harmful chemicals) in the one kilometer of the odor can be smelled outside. A large number of highly toxic waste water directly through the paddy fields and the inflow of water into the stream. Wastewater went, killing all crops, fish and shrimps in the river of death issued by the stench waves. In addition, the arrival times of heavy rain, the mountains were a large number of bare soil down the mountain floods, resulting in a large number of farmland were flooded. This type of predatory exploitation of destruction should be severe to be banned, even though there is no strategy of rare earth resources, in so doing will destroy the environment for our children and grandchildren is a crime, by exercising strict control over polluting enterprises significantly lower the production capacity of rare earth, there is now no longer yield a surplus of situation will lead to vicious competition. And finally, there is the extraction of rare earth ore ballast after the more rigorous management, which may require the mining of ballast material and rare earth elements harmful residues must be a certain small value, in order to eliminate backward technology. According to the report of National Development and Reform Commission, China’s annual production capacity of the separation of rare earth smelting 200,000 tons, more than double the world’s annual demand. Standards on the environment is not mine, be firmly closed and shut down after the mining permit from the newly acquired, we permit the source to closely guard the pass, so we are out of harsh measures of environmental protection capacity is necessary and feasible, so the market there is no surplus, there can be a good price. At the same time, ore mining enterprises, should be the restoration of the environment planning and cost, the plan should be in the project environmental assessment report in detail on the inside, and the expenditure should be in every one ton of mineral extraction will be extracted, or at the end of business do not have the money, the environment have caused the disaster, it is too late, we allow enterprises to withholding the cost of the environment to civil authorities to restore and increase the cost of exploitation and protection of the environment, not to mention the protection of resources in other areas is also very important. For this kind of enforcement must be strict to avoid local interests, corruption, rent-seeking to avoid, we can mobilize to do police have to monitor, because of rare earth mining and forest land and water resources for the destruction of forest belonging to the armed police of the areas of police management , especially for the private collusion with triads dig illegally, than the local public security police and government officials to be more effective, even the police are corrupt, but also increase the cost of corruption, and armed police soldiers is flowing at any time to change jobs, and the Armed Police Force can rotation, and further, we can set up a special armed police force, similar to now, there’s armed police force gold, gold for the control of the country can take the armed police, are for the rare earth can not it? Even a simple point, then the gold directly to the armed police forces, such as terms of reference extended to rare earth resources in the areas of strategic importance on it.
Environmental issues for the same time, we can see that China’s private mining indiscriminate digging, the work safety of employees is not guaranteed, long-term exposure to harmful chemicals, occupational diseases are some exceptions, we can strengthen the work safety supervision in respect of these Mine safety equipment, can also increase their own production costs, the current low price of rare earth behind, as well as China’s society there hidden costs for the mining of rare earth safety management, we can set up a coal mine than more stringent specification.
We can also all the rare earth in China to monitor transactions, we can as an important strategic materials RE national oversight, no restrictions on who is going to dry, to maintain the free market is not an excuse to others, but all the production and sale of all rare earth To carry out supervision. All the rare-earth mining and trading of resources put under surveillance, so that we state for the rare-earth resources and the flow can master all kinds of illegal acts is not a good operation. So that we can create a rare earth of the futures and spot market, all the rare earth market transactions are carried out in the ban over-the-counter transactions, so that the market of rare earth thoroughly master all kinds of information, for the control of information is also very important, at the same time dig ileaglly dug for there is no private space, all the rare earth products transactions require proof of legal access, or we can take stringent measures to confiscate, no mining is not eligible for the illegal exploitation of market space.
Many small and medium enterprises in China, but the establishment of such a unified market, and our resources on the market power greatly strengthened, and our country will be able to reserve this kind of market national control of market, the market could be the spot futures can also be In the future, the introduction of rare earth can also index, and foreign enterprises to enter such a market, we can examine the transaction to his qualifications, up to a most-favored-nation, because the futures market, dealers eligible for a normal review, the famous London Stock Exchange LME eligibility is very strict, and we in this market as long as the rules on non-discriminatory and strictly regulate it. This is a foreign company in our market, whether the normative acts of the transaction are within the scope of our regulatory, market manipulation if malicious, we can also increase the punishment, and now these malicious manipulation of the market of rare earth in China is in the hands of international companies the pricing power of rare earth, and we do trade in the domestic market, the formation of rare earth, pricing power shifts to the hands of the Chinese people, so this policy is also very crucial.
At the same time, we would like to see such a market, once established, a variety of social investment, which will enter speculative funds, these funds are also in the indirect injection of capital to the industry and at the same time low prices in the rare-earth, it is not dare to do short of funds Otherwise, short-rolling is a very terrible thing, these funds in order to line their own profits will do more to raise the price of rare earth, and the high price of rare earth, and enterprises of China’s resources is the best interests of the source. After the establishment of such a market for the world of the rare earth and its products have a huge range of long-term agreement the reference value, many of our suppliers are modeled on the metal the London Metal Exchange LME settlement price, which is a reflection of pricing power.
Use of our resources to take advantage of, the establishment of big market, is also carried out the reform and development of our needs, but also for the world we need the right words, if the advantages of our resources, metals, such as: rare earth, tungsten, molybdenum, antimony prices, etc. again several times through improper means, and this is more than one hundred billion U.S. dollars a big market, the influence of this market will be a monopoly, because we had a monopoly from the source of resources. There is a very important point is that this market is to price the RMB, the yuan in the future to enter the global financial system is also good, Russia is not through their resources, I hope in the oil and other materials on the pricing of the euro or ruble you ? With such a market, pricing power shifts to the meaning of the financial strategy, and for our country is very critical, but only in the rare earth such as the vast majority of China’s possession of the world’s resources can be the basis, if we lose this opportunity History will not care we.
At the same time we need to do is improve our scientific and technological strength, we are in fact rare earth and tungsten exports cheaper to foreign countries, foreign refining and then sell high-priced, we exported 40,000 tons of tungsten ore and 15,000 tons of tungsten content of the products, access to foreign exchange is about 500 million U.S. dollars, and we must import the high-purity tungsten price: 99.95% purity of the price of tungsten is 2-3 million / kg, and the purity of 99.99% of the price of tungsten is about 170,000 / kg, the price difference between the depth of processing greatly, we have to consider the input of high-tech support for the issue of resources is no longer exports are also important.
Such a policy of resistance and national importance should be worried about the following aspects: first, the surge is to enable the business made a lot of money, state of the country anyway, there are many private ones? Some foreign investment has been controlled by it? The second is the power of a lot of rent-seeking and creating new space for corruption; The third is the use of domestic rare earth unbearable units. But I am a thorough analysis of these problems through improper means of rare earth with us the benefits of the price compared to not only see the trees, do not see the forest.
The first question, first of all, to see this even if the private made a lot of money, money is the Chinese people, wealth in China to create China’s domestic demand and economic development, rather than low prices are now rare-earth to let foreigners go to earn interest wealth abroad, and we can not make money jelous the envy of others. More importantly, we should see additional profits for this, we can adjust the tax, so that the rare-earth prices, you can collect: resource tax, a consumption tax, environmental tax, profits tax and so on. Here will be referred to another article in front of me talking about the wisdom of the African chiefs, the colonial powers in Africa a high tax rate is, in fact, with the West African chiefs were the colonizers of the game means to the mines in Africa are in the West the hands of the colonizers, the Government through the collection to share these interests.
State to buy, the price can not be tax avoidance, 17 percent of China’s value-added tax, income tax 25%, as well as resources for a variety of tax and surcharges, for the private owner of 20% of personal income tax, itself part of the price increase has been more than 50% of the charged back in the distribution of benefits is also very good. And higher price, we can also increase resource tax, the levy of consumption tax, windfall profits tax, to have returned more than 80% is not difficult, even if such interest is attributable to the State and the bulk of the new society, for enterprises in the prices of rare earth country after the acquisition is also derived from the sale to be cheaper than it is now more rare earth is also the benefit of enterprises.
We look at what we have just the large displacement vehicles to raise the consumption tax to 40 percent, everyone knows big displacement cars are basically imported cars, but we received for all businesses not to increase tariffs on the consumption tax does not violate the provisions of WTO, the Western world is nothing to say, so that even rare-earth for control of foreign capital enterprises, if the increase is 40% of the consumption tax, we have such a policy, the profit you have to stay in China’s society, but also to countries purchase price for the tax base, no one can price a false purchase price under the national tax, the Inland Revenue Department to open lower than the price that the transaction is an exchange of special interest to conduct a non-market transactions to adjust the transaction price, in accordance with the State tax price. This is international precedent and more extreme, not in front of Ecuador is the oil profits to the country 99% of you! And we also noted that our value-added tax and consumption are price and tax, that is, the price is a product, an additional increase in the prices of a tax item, was the development of such a policy is the introduction of these taxes in order to time for long-term supply agreement from the buyer, even if such a provision allows Chinese enterprises signed with the foreign supplier of rare earth long-term agreement, then the amount of taxes should be an increase in supply in the price of the entire agreement outside the things in order to ensure that we have been through most of the tax benefits, even though the price was very low, if we think about the market price in accordance with the standards now tax, consumption tax is 40 percent, 17 percent value-added tax, the price of rare earth resources, more than half of the money is tax, and tax the cost of production resources, etc., plus the cost of certain tariffs and, in fact, even the very low long-term agreements, in accordance with the taxable market value, this low-cost and market price difference between the Chinese Government has also received the bulk.
At the same time, these long-term agreements, we can in our judicial interpretations of the standards set by default, payment of liquidated damages must be able to breach of contract, economic contract for liquidated damages of GM material prices are generally 5%, and a dedicated sales materials 30% of price, rare earth materials should be universal, the penalty is too high we can in the law as illegal, if the interest rate on bank interest rates up to 4 times, we may provide the high-limit penalty, in accordance with China’s laws, liquidated damages may apply to the court to reduce excessive, these long-term supply agreement provides for even a high of liquidated damages is also untenable, we are trading in China Rare Earth will certainly have to apply the laws of China! Rare earth resources in the context of prices, Chinese enterprises can be for foreign investors pay a long-term supply agreement for liquidated damages for breach of contract in order to shake off foreign control. At the same time we also see that China is a state-owned mines and mining rights belong to the national mandate, and the nature of the allocation of land is similar to the assets in the enterprise value of which is not calculated, so that the operation of corporate bankruptcy and reorganization for the benefit of external breach of contract , we need only to re-mining companies to re-apply to give a certain degree of support it, which is prevailing in the international arena is the private mines are very different from the advantages of our operation. Our Mineral Law and relevant laws of the Western world compared to the difference between a great, no law is not good, but sometimes as a good thing, we can see each other’s game after the cards, re-enacted laws restricting the corresponding ,act after things happens often is beneficial.
Rare Earth in our overall interests of the allocation of resources, we also can learn the practice of the African chiefs, chiefs of Africa requires that all of these enterprises have 20-30% of the “black rights”, we can not require all the resources of China enterprises must have a local or national charity of 20-30% of the rights, this power by the local or national social security institutions, local or national service in the cause of the people’s welfare and security, the national interest of rare earth high up a feedback again to society, is it not give you the Harmony? African countries in their implementation of this kind of “black rights”, the Western world there is no way, we have the resources that belong to our people, not the exploitation of resources of a small group of business interests, our social security funds and the system was incomplete, in urgent need of financial support, drag our consumer demand, our exploitation of resources to establish a feedback mechanism for the people, can you unreasonable? These resources to China’s people’s welfare as an important source of protection is itself a significant manifestation of a harmonious society, and such a law through the legislative process can be carried out, after the people’s vote is not foreign forces to interfere in internal affairs.
Foreign forces for the looting of rare earth resources, we really should be more to learn from the experience of the African chiefs, colonial Africa, the region is more about the history of Western colonizers accumulated wisdom of China’s reform and opening up a new generation of leaders have not the West’s colonial first-hand experience, many so-called foreign investment in China is, in fact, China’s colonial plundering, looting their objective is clear, in a new era of post-World War II colonial plundering the colonial way of investment and access to ultra – national treatment, which is a group of people the new vampire Western colonizers, but we also like those of the wolf as a benefactor to support them, and some black sheep in the wolf to eat the remaining waste, we need foreign investment to promote China’s scientific and technological progress and social development of the investment, rather than plundering the resources of the “investment”, the investment is not investing in the colonial, the colonial characteristics of the largest super-national treatment, of course, these colonists to heavy taxes and reasonable adjustments, so for the African countries re-exposure to tax system in which only you will be able to understand their way of thinking of those in power, we have a black chief of the nation is a very stupid and arrogant. I can look at issues related to the article, “buy mines in Africa continued in mind: the sun about the realm of the African soil UAE”
As for the rights of the fear of corruption and rent-seeking is only a minor issue, we should first see that it was not things in avoid of bad results, the more significant the more often a matter of the space the greater the corruption, we conducted the real estate space for regulation and control of corruption To what extent, we are not the same, we must resolutely implement it? Then we can be more severe punishment, for rare earth and other countries want to recover the resources, who would dare to bribery on economic crimes in accordance with the criminal law punishment of forfeiture of additional property, the state-owned mineral rights, so that the high state and high-profit, cost-law Who dares to take risks increase profit? State departments for the acquisition of the assessment rather than less spending money, but must be sufficient to buy the rare earth, not the same as the rules of the game could have been avoided national food in the process of acquisition of a variety of potential rules. Finally we have this power but also more wide-range of rent-seeking manner, due to the payment of rent-seeking costs of these rights, foreign buyers, their interests to our country and society itself to make the things we now sell low-cost resources are the foreigners to earn interest, corrupt wealth flows better than cheap outsiders, which is also different from corruption, that is, I bought mine in front of the African mind drying out in the thinking of African chiefs. At the same time we think about China, the sale of low-cost overseas resources to long-term neglect, two-thirds of China’s reserves of rare earth mining mad after being sold overseas, the profit is more likely to have corrupt comprador more likely is that the rights of such rent-seeking problems right now is a vested interest in profit, it is our policy affects their interests, because it can corrupt money into another group.
The last is the units for domestic use, we use for domestic, can be subsidized, the subsidies can be limited to our important military, scientific research and so on strategic sectors, and for the ordinary civil and other industries, we can with the world, and because the rare-earth prices, the world related industries will also raise the cost of high prices, we in the same starting line, will not affect China’s industrial competitiveness. This behavior for the subsidies in international trade does not handle left to the other side to avoid the international community to protect countervailing trade.
And in the international game, we also can be the grounds of national security and terrorism, require that all foreign companies to buy rare earth materials submitted to prove that they did not conduct improper trade, require them to make public use of the ultimate customers, the Commission by the Chinese review did not give proof of terrorist organizations and anti-military organizations and countries, such as in Tibet, Xinjiang and Taiwan issue, China has the wrong behavior, we also engage in an embargo, on this point with the United States and its Western countries for our embargo on arms and technology, engage in a diplomatic reciprocity, WTO on how well we like to break the embargo will also remain a bargaining chip in diplomatic negotiations.
Here, we also noted a problem that we present the rare-earth prices is not as good as a lot of pork, in fact, even such a low price as all the profits have not found the number of white interests and the inertia of thinking is why we believe that China Many of the rare-earth issues such corrupt officials, corruption of the inertia of thinking is problematic because there is no corruption in the interests of so much space, bribe a person will make a big bribe, they will not quit the law. Here we must note that there is the possibility of foreign spies, the social development of the spy world has shifted the focus from the military and diplomatic resources to the field of economic and, for this relationship to the world of rare earth high-tech development strategy for the future of the resources, but also must be important objective of espionage. After the Cultural Revolution in our foreign espionage agents to remain vigilant of this string is overkill, and two to three decades after the people in general do not mind the concept of the spy, who no doubt will be some spyware. And was the beginning of reform and opening up the West flatter the westerners poverty and material inducement to a lot of people dragged into the water, and once failure, regret for ever, they have to do is to enter a foreign spy system, they will not be able to shake off their own back, regardless of whether or not a traitor willing to only the farther and farther down the road, while the foreign forces through a variety of means to those of their agents and spies to all kinds of relations and means of bribery, etc. to their needs and the needs of the position, and the rare earth such as China to control global core strategic resources they will be able to let it? So here we are introduced to the relevant departments of China’s rare earth resources of the incredible loss of the policy, the accountability of decision-makers are not there any corruption, but the real question they are not a spy! This is not much room for corruption, espionage fertile soil, do not see that they do not take money that they are blameless! So for us the protection of rare earth resources, China’s national security and intelligence agencies should be highly concerned about and actively involved in the new historical period more to defend the national sovereignty is to defend the country’s strategic resources. Here the need for concerted action with the community is not grasping the first anti-spyware but corrupt officials, corrupt officials for the efforts China has too many checks and balances the interests of good relations to gain the upper hand, but even the corrupt anti-spyware do not want to be equated with treason for.
Now we should be aware of the problem, but our technical means of coarse dry, stupid policy, it should be the resources to collect high taxes, environmental taxes, both at home and abroad, as if there is nothing the West can be said. Enterprises used to conduct high-tech subsidies. Failed to comply with international game rules of the game, resulting in give others excuse is the crux of the problem, Europe and the United States carried out by WTO litigation, international situation is very passive, but we need to rethink, to make use of the rules of the game, we control the resources of the domestic market through improper means prices and the establishment of a national strategic reserve in our country a national act, it is our internal affairs, such as economic decision-making, not to the West in the international community a basis to stir up trouble, is the use of rules to safeguard the fundamental interests of the key countries.
And our game for this kind of rare earth, we must rise to the international redistribution of resources and the major international game of great historical game understand not only the rare earth sector related to the interests of industry sectors, but also the country’s competitiveness in the world competition, should mobilize forces of all countries can only be carried out, because Western countries have a joint action together, we need to mobilize all the forces can be mobilized, including: financial, customs, environmental protection, the letter of the Ministry of Development and Reform Commission, state-owned assets Committee, the State Reserve, public security, national security, armed police, industry and commerce, production safety, labor protection, land resources, taxation, financial, diplomatic, legislative, and judicial departments of action, etc., all kinds of policy co-ordination and, if necessary, re-establish a unified coordination institutions, various departments of China can not fragmentation, nor the interests of mixed sector, which is China’s resources to defend vital national strategic issues, we must at the national level strategy for action, 12 and even the power of a few parts of the West prepared from the world’s resources is not strong enough to attack. For the defense of our resources, as to defend our territory and sovereignty, should be of paramount importance to modern state, and foreign wars to the same treatment.
Finally we sum up the idea of our rare-earth strategy:
1, the state national collection, the prices do go up, up resources;
2, financial support and even money into rare earth, rare-earth industry made strong;
3, so a unified market of rare earth, the establishment of futures and index, for pricing of RMB financial support;
4, to strengthen the production of environmental protection, safety, labor and social security, etc., to increase costs;
5, by means of adjusting income tax and social welfare to the corresponding rights and interests, the interests of big to stay in China;
6, the distinction between foreign investors, foreign management, engage in diplomacy on and so on, reflect the differences in national treatment; taking into account the issue of anti-spyware;
7, proceedings in the results of the use of rules to create an enabling domestic legislation and judicial interpretation to the mineral interests of supply-side tilt.

According to the information 1-6 months in 2007, the National Scheelite yield 40,309 tons (equivalent to the volume of WO365%, the same below). 2007 January to June, a total export volume of tungsten metal products 15,343.8 tons and exports 535 million U.S. dollars. This estimate of the annual exports of tungsten is about one billion U.S. dollars; I query the network to the rare-earth price of 99.9% purity cerium oxide is 18 yuan / kg, the highest selling over the past 30 yuan / kg; oxide Nd 80 Yuan / kg, and sold over the past 90-100 yuan / kg; yttria 57 yuan / kg, sold over the past 100-200 yuan / kg. The last century of rare earth chloride, sold the 80’s the price in Japan is 15 yuan / kg, but now sold 7.5 yuan / kg; Europium oxide sold over the past seven dollars / kg, now selling only two dollars / kg. And the processing capacity of rare earth is naturally 200,000 tons, an average of less than 5% of rare earth compounds, a year after the purification of less than 10,000 tons of rare earth to rare earth high-priced 100 U.S. dollars a kilogram, with the total market value of one billion U.S. dollars is , together with our tungsten exports, that is two billion U.S. dollars, for we had to rely on China’s foreign exchange shortage of resources in exchange for the sale of foreign exchange, so a little bit of interest now for our 2 trillion of foreign exchange reserves, it is no big deal, the future world urgently needed price increases 100 times, resulting in a 200 billion dollar market, the market and the bulk commodities of copper, iron and so comparable, so nearly 20 kinds of rare strategic metals market is only this point, however, the global high-tech industry the added value is also what is not, therefore, the shortage of resources is a huge rise in the value space, the price is not high is not the parties to the transaction, such as the strength of pricing power, China could not afford to go on to be predatory .

We also noted here that the rare earth is different from the iron and steel, petroleum, nonferrous metals and other bulk commodities, not only low-cost storage, and even if many times the price of the current national production of all global reserves and there was no problem with these Rare Earth will be the international currency market, foreign exchange reserves can be comparable to, if we think about oil reserves, one per cent of our foreign exchange reserves into barrels of oil is on, you do not have local storage and the cost of storage This will let you practice economy viable. Strategic reserves of rare earth, etc. It is easy for storage, with the acquisition of large-scale Chinese prices go up after the performance of rare-earth hard currency will become better and better, would produce a certain effect of foreign exchange reserves. The same price of their procurement priority is the embodiment of national treatment, while the country has super-national treatment, the acquisition of priority countries, many foreign countries is harder, and the acquisition of high-priced country, where open land outside of the higher prices will certainly, I do not limit the you buy and export, but we are the market price of the cheapest you can not buy.

For rare earth, such as China’s financial support, in fact, can be taken further financial innovation, as for precious metals such as rare earth, we can be seen as a currency or currency of the collateral, in the past the gold and silver is now the bonds, we the rare-earth metals as a currency of many of the collateral to the issuance of currency, such a policy in China as a result of such a rare earth resources, so that China can adopt such a policy will not be like other countries in the world because it had the right to the country’s financial to China. And the rare earth as the monetary equivalent of the advantage is that other countries, regardless of what kind of economic regulation and tightening of liquidity, rare-earth industry is not going to put tighter liquidity and low-cost funds to sell to foreigners, and the economic crisis to social capital will also accumulation of rare earth to hedge, so that the prices of rare earth, as long as the price of rare earth line up, that is, holders of the resources of the entire Chinese society and good fortune, as the currency collateral for the man-made attributes to the rare earth in money, to find the rare earth the new applications, so that we can digest the enormous and excessive production capacity of rare earth, as the world’s gold production in the same situation; while such a policy, given the currency of rare earth properties, equivalent to inject liquidity to society, than the country’s pro-active fiscal policy or beneficial, because of financial bonds to repay these loans. China’s central bank as the mortgage money and a large number of rare earth national collection is China’s strategic reserves, future needs, such as the gold standard of bankruptcy can be like, the abolition of the currency peg RE it. Financial means are often the most easily without fighting enemy soldiers, but it requires the coordination of China’s domestic balance of the various departments and vested interests, it is very difficult to achieve, but in the face of the fundamental interests of the country really should be the same as the overall war fighting . Resources of international war, the currency war, financial war of nature is in fact the same, is to share the resources of his country, re-allocation of resources into a blueprint for the world, so our game and the rare-earth financial and monetary integration, it is very reasonable, at the same time and financial integration such that we are very beneficial, because we control the rare earth has become a reserve currency countries, and countries do not have enough of rare earth resources, it is impossible to attack our financial systems of rare earth.

In addition to the need to raise prices is to increase the cost of enterprises, many Chinese enterprises are the rare-earth mining damage to the environment, we need to increase the environmental review and punishment for these environmental protection measures, but also what foreign countries can not say. Rare-earth mining is a serious environmental problems, China is lagging behind the exploitation of the rare-earth, many of the original in the sense that the hole in the hills, rare earth excavated in the clay together, and clay with oxalic acid to extract the chemical reaction occurred in the primary rare earth, would like to about 95% of other material to use acid to dissolve only be 5% of the rare earth content, what kind of pollution. As a result, the soil hills almost hollowed out, resulting in serious soil erosion and destruction of surface vegetation. Large-scale illegal exploitation of rare-earth mine, the ammonium nitrate, sulfuric acid and other highly toxic chemical medicine washed mine waste water without any treatment, directly into the river a lot. From all mining points to see a large number of machines in a few hills full swing, Castle into a large yellow slope, large trees have been felled, the washing down the mountain pond of chemicals such as ammonium sulfate (heard there are other harmful chemicals) in the one kilometer of the odor can be smelled outside. A large number of highly toxic waste water directly through the paddy fields and the inflow of water into the stream. Wastewater went, killing all crops, fish and shrimps in the river of death issued by the stench waves. In addition, the arrival times of heavy rain, the mountains were a large number of bare soil down the mountain floods, resulting in a large number of farmland were flooded. This type of predatory exploitation of destruction should be severe to be banned, even though there is no strategy of rare earth resources, in so doing will destroy the environment for our children and grandchildren is a crime, by exercising strict control over polluting enterprises significantly lower the production capacity of rare earth, there is now no longer yield a surplus of situation will lead to vicious competition. And finally, there is the extraction of rare earth ore ballast after the more rigorous management, which may require the mining of ballast material and rare earth elements harmful residues must be a certain small value, in order to eliminate backward technology. According to the report of National Development and Reform Commission, China’s annual production capacity of the separation of rare earth smelting 200,000 tons, more than double the world’s annual demand. Standards on the environment is not mine, be firmly closed and shut down after the mining permit from the newly acquired, we permit the source to closely guard the pass, so we are out of harsh measures of environmental protection capacity is necessary and feasible, so the market there is no surplus, there can be a good price. At the same time, ore mining enterprises, should be the restoration of the environment planning and cost, the plan should be in the project environmental assessment report in detail on the inside, and the expenditure should be in every one ton of mineral extraction will be extracted, or at the end of business do not have the money, the environment have caused the disaster, it is too late, we allow enterprises to withholding the cost of the environment to civil authorities to restore and increase the cost of exploitation and protection of the environment, not to mention the protection of resources in other areas is also very important. For this kind of enforcement must be strict to avoid local interests, corruption, rent-seeking to avoid, we can mobilize to do police have to monitor, because of rare earth mining and forest land and water resources for the destruction of forest belonging to the armed police of the areas of police management , especially for the private collusion with triads dig illegally, than the local public security police and government officials to be more effective, even the police are corrupt, but also increase the cost of corruption, and armed police soldiers is flowing at any time to change jobs, and the Armed Police Force can rotation, and further, we can set up a special armed police force, similar to now, there’s armed police force gold, gold for the control of the country can take the armed police, are for the rare earth can not it? Even a simple point, then the gold directly to the armed police forces, such as terms of reference extended to rare earth resources in the areas of strategic importance on it.

Environmental issues for the same time, we can see that China’s private mining indiscriminate digging, the work safety of employees is not guaranteed, long-term exposure to harmful chemicals, occupational diseases are some exceptions, we can strengthen the work safety supervision in respect of these Mine safety equipment, can also increase their own production costs, the current low price of rare earth behind, as well as China’s society there hidden costs for the mining of rare earth safety management, we can set up a coal mine than more stringent specification.

We can also all the rare earth in China to monitor transactions, we can as an important strategic materials RE national oversight, no restrictions on who is going to dry, to maintain the free market is not an excuse to others, but all the production and sale of all rare earth To carry out supervision. All the rare-earth mining and trading of resources put under surveillance, so that we state for the rare-earth resources and the flow can master all kinds of illegal acts is not a good operation. So that we can create a rare earth of the futures and spot market, all the rare earth market transactions are carried out in the ban over-the-counter transactions, so that the market of rare earth thoroughly master all kinds of information, for the control of information is also very important, at the same time dig ileaglly dug for there is no private space, all the rare earth products transactions require proof of legal access, or we can take stringent measures to confiscate, no mining is not eligible for the illegal exploitation of market space.

Many small and medium enterprises in China, but the establishment of such a unified market, and our resources on the market power greatly strengthened, and our country will be able to reserve this kind of market national control of market, the market could be the spot futures can also be In the future, the introduction of rare earth can also index, and foreign enterprises to enter such a market, we can examine the transaction to his qualifications, up to a most-favored-nation, because the futures market, dealers eligible for a normal review, the famous London Stock Exchange LME eligibility is very strict, and we in this market as long as the rules on non-discriminatory and strictly regulate it. This is a foreign company in our market, whether the normative acts of the transaction are within the scope of our regulatory, market manipulation if malicious, we can also increase the punishment, and now these malicious manipulation of the market of rare earth in China is in the hands of international companies the pricing power of rare earth, and we do trade in the domestic market, the formation of rare earth, pricing power shifts to the hands of the Chinese people, so this policy is also very crucial.

At the same time, we would like to see such a market, once established, a variety of social investment, which will enter speculative funds, these funds are also in the indirect injection of capital to the industry and at the same time low prices in the rare-earth, it is not dare to do short of funds Otherwise, short-rolling is a very terrible thing, these funds in order to line their own profits will do more to raise the price of rare earth, and the high price of rare earth, and enterprises of China’s resources is the best interests of the source. After the establishment of such a market for the world of the rare earth and its products have a huge range of long-term agreement the reference value, many of our suppliers are modeled on the metal the London Metal Exchange LME settlement price, which is a reflection of pricing power.

Use of our resources to take advantage of, the establishment of big market, is also carried out the reform and development of our needs, but also for the world we need the right words, if the advantages of our resources, metals, such as: rare earth, tungsten, molybdenum, antimony prices, etc. again several times through improper means, and this is more than one hundred billion U.S. dollars a big market, the influence of this market will be a monopoly, because we had a monopoly from the source of resources. There is a very important point is that this market is to price the RMB, the yuan in the future to enter the global financial system is also good, Russia is not through their resources, I hope in the oil and other materials on the pricing of the euro or ruble you ? With such a market, pricing power shifts to the meaning of the financial strategy, and for our country is very critical, but only in the rare earth such as the vast majority of China’s possession of the world’s resources can be the basis, if we lose this opportunity History will not care we.

At the same time we need to do is improve our scientific and technological strength, we are in fact rare earth and tungsten exports cheaper to foreign countries, foreign refining and then sell high-priced, we exported 40,000 tons of tungsten ore and 15,000 tons of tungsten content of the products, access to foreign exchange is about 500 million U.S. dollars, and we must import the high-purity tungsten price: 99.95% purity of the price of tungsten is 2-3 million / kg, and the purity of 99.99% of the price of tungsten is about 170,000 / kg, the price difference between the depth of processing greatly, we have to consider the input of high-tech support for the issue of resources is no longer exports are also important.

Such a policy of resistance and national importance should be worried about the following aspects: first, the surge is to enable the business made a lot of money, state of the country anyway, there are many private ones? Some foreign investment has been controlled by it? The second is the power of a lot of rent-seeking and creating new space for corruption; The third is the use of domestic rare earth unbearable units. But I am a thorough analysis of these problems through improper means of rare earth with us the benefits of the price compared to not only see the trees, do not see the forest.

The first question, first of all, to see this even if the private made a lot of money, money is the Chinese people, wealth in China to create China’s domestic demand and economic development, rather than low prices are now rare-earth to let foreigners go to earn interest wealth abroad, and we can not make money jelous the envy of others. More importantly, we should see additional profits for this, we can adjust the tax, so that the rare-earth prices, you can collect: resource tax, a consumption tax, environmental tax, profits tax and so on. Here will be referred to another article in front of me talking about the wisdom of the African chiefs, the colonial powers in Africa a high tax rate is, in fact, with the West African chiefs were the colonizers of the game means to the mines in Africa are in the West the hands of the colonizers, the Government through the collection to share these interests.

State to buy, the price can not be tax avoidance, 17 percent of China’s value-added tax, income tax 25%, as well as resources for a variety of tax and surcharges, for the private owner of 20% of personal income tax, itself part of the price increase has been more than 50% of the charged back in the distribution of benefits is also very good. And higher price, we can also increase resource tax, the levy of consumption tax, windfall profits tax, to have returned more than 80% is not difficult, even if such interest is attributable to the State and the bulk of the new society, for enterprises in the prices of rare earth country after the acquisition is also derived from the sale to be cheaper than it is now more rare earth is also the benefit of enterprises.

We look at what we have just the large displacement vehicles to raise the consumption tax to 40 percent, everyone knows big displacement cars are basically imported cars, but we received for all businesses not to increase tariffs on the consumption tax does not violate the provisions of WTO, the Western world is nothing to say, so that even rare-earth for control of foreign capital enterprises, if the increase is 40% of the consumption tax, we have such a policy, the profit you have to stay in China’s society, but also to countries purchase price for the tax base, no one can price a false purchase price under the national tax, the Inland Revenue Department to open lower than the price that the transaction is an exchange of special interest to conduct a non-market transactions to adjust the transaction price, in accordance with the State tax price. This is international precedent and more extreme, not in front of Ecuador is the oil profits to the country 99% of you! And we also noted that our value-added tax and consumption are price and tax, that is, the price is a product, an additional increase in the prices of a tax item, was the development of such a policy is the introduction of these taxes in order to time for long-term supply agreement from the buyer, even if such a provision allows Chinese enterprises signed with the foreign supplier of rare earth long-term agreement, then the amount of taxes should be an increase in supply in the price of the entire agreement outside the things in order to ensure that we have been through most of the tax benefits, even though the price was very low, if we think about the market price in accordance with the standards now tax, consumption tax is 40 percent, 17 percent value-added tax, the price of rare earth resources, more than half of the money is tax, and tax the cost of production resources, etc., plus the cost of certain tariffs and, in fact, even the very low long-term agreements, in accordance with the taxable market value, this low-cost and market price difference between the Chinese Government has also received the bulk.

At the same time, these long-term agreements, we can in our judicial interpretations of the standards set by default, payment of liquidated damages must be able to breach of contract, economic contract for liquidated damages of GM material prices are generally 5%, and a dedicated sales materials 30% of price, rare earth materials should be universal, the penalty is too high we can in the law as illegal, if the interest rate on bank interest rates up to 4 times, we may provide the high-limit penalty, in accordance with China’s laws, liquidated damages may apply to the court to reduce excessive, these long-term supply agreement provides for even a high of liquidated damages is also untenable, we are trading in China Rare Earth will certainly have to apply the laws of China! Rare earth resources in the context of prices, Chinese enterprises can be for foreign investors pay a long-term supply agreement for liquidated damages for breach of contract in order to shake off foreign control. At the same time we also see that China is a state-owned mines and mining rights belong to the national mandate, and the nature of the allocation of land is similar to the assets in the enterprise value of which is not calculated, so that the operation of corporate bankruptcy and reorganization for the benefit of external breach of contract , we need only to re-mining companies to re-apply to give a certain degree of support it, which is prevailing in the international arena is the private mines are very different from the advantages of our operation. Our Mineral Law and relevant laws of the Western world compared to the difference between a great, no law is not good, but sometimes as a good thing, we can see each other’s game after the cards, re-enacted laws restricting the corresponding ,act after things happens often is beneficial.

Rare Earth in our overall interests of the allocation of resources, we also can learn the practice of the African chiefs, chiefs of Africa requires that all of these enterprises have 20-30% of the “black rights”, we can not require all the resources of China enterprises must have a local or national charity of 20-30% of the rights, this power by the local or national social security institutions, local or national service in the cause of the people’s welfare and security, the national interest of rare earth high up a feedback again to society, is it not give you the Harmony? African countries in their implementation of this kind of “black rights”, the Western world there is no way, we have the resources that belong to our people, not the exploitation of resources of a small group of business interests, our social security funds and the system was incomplete, in urgent need of financial support, drag our consumer demand, our exploitation of resources to establish a feedback mechanism for the people, can you unreasonable? These resources to China’s people’s welfare as an important source of protection is itself a significant manifestation of a harmonious society, and such a law through the legislative process can be carried out, after the people’s vote is not foreign forces to interfere in internal affairs.

Foreign forces for the looting of rare earth resources, we really should be more to learn from the experience of the African chiefs, colonial Africa, the region is more about the history of Western colonizers accumulated wisdom of China’s reform and opening up a new generation of leaders have not the West’s colonial first-hand experience, many so-called foreign investment in China is, in fact, China’s colonial plundering, looting their objective is clear, in a new era of post-World War II colonial plundering the colonial way of investment and access to ultra – national treatment, which is a group of people the new vampire Western colonizers, but we also like those of the wolf as a benefactor to support them, and some black sheep in the wolf to eat the remaining waste, we need foreign investment to promote China’s scientific and technological progress and social development of the investment, rather than plundering the resources of the “investment”, the investment is not investing in the colonial, the colonial characteristics of the largest super-national treatment, of course, these colonists to heavy taxes and reasonable adjustments, so for the African countries re-exposure to tax system in which only you will be able to understand their way of thinking of those in power, we have a black chief of the nation is a very stupid and arrogant. I can look at issues related to the article, “buy mines in Africa continued in mind: the sun about the realm of the African soil UAE”

As for the rights of the fear of corruption and rent-seeking is only a minor issue, we should first see that it was not things in avoid of bad results, the more significant the more often a matter of the space the greater the corruption, we conducted the real estate space for regulation and control of corruption To what extent, we are not the same, we must resolutely implement it? Then we can be more severe punishment, for rare earth and other countries want to recover the resources, who would dare to bribery on economic crimes in accordance with the criminal law punishment of forfeiture of additional property, the state-owned mineral rights, so that the high state and high-profit, cost-law Who dares to take risks increase profit? State departments for the acquisition of the assessment rather than less spending money, but must be sufficient to buy the rare earth, not the same as the rules of the game could have been avoided national food in the process of acquisition of a variety of potential rules. Finally we have this power but also more wide-range of rent-seeking manner, due to the payment of rent-seeking costs of these rights, foreign buyers, their interests to our country and society itself to make the things we now sell low-cost resources are the foreigners to earn interest, corrupt wealth flows better than cheap outsiders, which is also different from corruption, that is, I bought mine in front of the African mind drying out in the thinking of African chiefs. At the same time we think about China, the sale of low-cost overseas resources to long-term neglect, two-thirds of China’s reserves of rare earth mining mad after being sold overseas, the profit is more likely to have corrupt comprador more likely is that the rights of such rent-seeking problems right now is a vested interest in profit, it is our policy affects their interests, because it can corrupt money into another group.

The last is the units for domestic use, we use for domestic, can be subsidized, the subsidies can be limited to our important military, scientific research and so on strategic sectors, and for the ordinary civil and other industries, we can with the world, and because the rare-earth prices, the world related industries will also raise the cost of high prices, we in the same starting line, will not affect China’s industrial competitiveness. This behavior for the subsidies in international trade does not handle left to the other side to avoid the international community to protect countervailing trade.

And in the international game, we also can be the grounds of national security and terrorism, require that all foreign companies to buy rare earth materials submitted to prove that they did not conduct improper trade, require them to make public use of the ultimate customers, the Commission by the Chinese review did not give proof of terrorist organizations and anti-military organizations and countries, such as in Tibet, Xinjiang and Taiwan issue, China has the wrong behavior, we also engage in an embargo, on this point with the United States and its Western countries for our embargo on arms and technology, engage in a diplomatic reciprocity, WTO on how well we like to break the embargo will also remain a bargaining chip in diplomatic negotiations.

Here, we also noted a problem that we present the rare-earth prices is not as good as a lot of pork, in fact, even such a low price as all the profits have not found the number of white interests and the inertia of thinking is why we believe that China Many of the rare-earth issues such corrupt officials, corruption of the inertia of thinking is problematic because there is no corruption in the interests of so much space, bribe a person will make a big bribe, they will not quit the law. Here we must note that there is the possibility of foreign spies, the social development of the spy world has shifted the focus from the military and diplomatic resources to the field of economic and, for this relationship to the world of rare earth high-tech development strategy for the future of the resources, but also must be important objective of espionage. After the Cultural Revolution in our foreign espionage agents to remain vigilant of this string is overkill, and two to three decades after the people in general do not mind the concept of the spy, who no doubt will be some spyware. And was the beginning of reform and opening up the West flatter the westerners poverty and material inducement to a lot of people dragged into the water, and once failure, regret for ever, they have to do is to enter a foreign spy system, they will not be able to shake off their own back, regardless of whether or not a traitor willing to only the farther and farther down the road, while the foreign forces through a variety of means to those of their agents and spies to all kinds of relations and means of bribery, etc. to their needs and the needs of the position, and the rare earth such as China to control global core strategic resources they will be able to let it? So here we are introduced to the relevant departments of China’s rare earth resources of the incredible loss of the policy, the accountability of decision-makers are not there any corruption, but the real question they are not a spy! This is not much room for corruption, espionage fertile soil, do not see that they do not take money that they are blameless! So for us the protection of rare earth resources, China’s national security and intelligence agencies should be highly concerned about and actively involved in the new historical period more to defend the national sovereignty is to defend the country’s strategic resources. Here the need for concerted action with the community is not grasping the first anti-spyware but corrupt officials, corrupt officials for the efforts China has too many checks and balances the interests of good relations to gain the upper hand, but even the corrupt anti-spyware do not want to be equated with treason for.

Now we should be aware of the problem, but our technical means of coarse dry, stupid policy, it should be the resources to collect high taxes, environmental taxes, both at home and abroad, as if there is nothing the West can be said. Enterprises used to conduct high-tech subsidies. Failed to comply with international game rules of the game, resulting in give others excuse is the crux of the problem, Europe and the United States carried out by WTO litigation, international situation is very passive, but we need to rethink, to make use of the rules of the game, we control the resources of the domestic market through improper means prices and the establishment of a national strategic reserve in our country a national act, it is our internal affairs, such as economic decision-making, not to the West in the international community a basis to stir up trouble, is the use of rules to safeguard the fundamental interests of the key countries.

And our game for this kind of rare earth, we must rise to the international redistribution of resources and the major international game of great historical game understand not only the rare earth sector related to the interests of industry sectors, but also the country’s competitiveness in the world competition, should mobilize forces of all countries can only be carried out, because Western countries have a joint action together, we need to mobilize all the forces can be mobilized, including: financial, customs, environmental protection, the letter of the Ministry of Development and Reform Commission, state-owned assets Committee, the State Reserve, public security, national security, armed police, industry and commerce, production safety, labor protection, land resources, taxation, financial, diplomatic, legislative, and judicial departments of action, etc., all kinds of policy co-ordination and, if necessary, re-establish a unified coordination institutions, various departments of China can not fragmentation, nor the interests of mixed sector, which is China’s resources to defend vital national strategic issues, we must at the national level strategy for action, 12 and even the power of a few parts of the West prepared from the world’s resources is not strong enough to attack. For the defense of our resources, as to defend our territory and sovereignty, should be of paramount importance to modern state, and foreign wars to the same treatment.

Finally we sum up the idea of our rare-earth strategy:

1, the state national collection, the prices do go up, up resources;

2, financial support and even money into rare earth, rare-earth industry made strong;

3, so a unified market of rare earth, the establishment of futures and index, for pricing of RMB financial support;

4, to strengthen the production of environmental protection, safety, labor and social security, etc., to increase costs;

5, by means of adjusting income tax and social welfare to the corresponding rights and interests, the interests of big to stay in China;

6, the distinction between foreign investors, foreign management, engage in diplomacy on and so on, reflect the differences in national treatment; taking into account the issue of anti-spyware;

7, proceedings in the results of the use of rules to create an enabling domestic legislation and judicial interpretation to the mineral interests of supply-side tilt.

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