Industry News

China Fortifies Rare Earth Export Policies

May 23, 2011


Chinese Government officials recently revealed plans to strengthen China’s quota system on rare earth exports and to raise taxes on rare earth minerals. China’s State Council has announced that it will substantially increase tax collection on these minerals. Additionally, the State Council plans to combat illegal mining and smelting by setting up a strict industry monitoring system to guard access to the minerals.

Last October, China’s rare earth export policies became a significant diplomatic issue when China temporarily ceased exporting raw rare earth minerals to Japan, the European Union, and the United States. China produces 95-97 percent of the world’s rare earths, which are used in the production of clean energy technologies, computers, and electronics.

 

In a preliminary ruling issued in February, 2011, the World Trade Organization ruled that China’s policies involving zinc, magnesium, yellow phosphorus, and other metals violated international trade law.

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