As a larger owner and producer of rare earth resources, China does not have pricing power. This situation naturally needs to be changed. But now, what kind of protection methods and methods are more urgent can reduce disputes and troubles.

On the 4th, the Office of the US Trade Representative issued a statement saying that the United States has joined the European Union and Mexico to ask the World Trade Organization to set up an expert group to hear and ruling the so-called China restrictions on raw material exports. Today, with China's increasingly close ties to the world economy, it is not uncommon for such trade disputes to increase. We should treat it with a normal attitude and calmly explore ways to deal with it.

According to the United States, the European Union and Mexico, China imposes export restrictions on raw materials used in the production of steel, aluminum and chemical products, which has pushed up the prices of raw materials in the international market and made Chinese related companies gain an "unfair advantage" in international competition. ". Regarding the US, EU and Mexico complaints, the Chinese Ministry of Commerce has previously stated that the main purpose of China's export policy is to protect the environment and protect natural resources.

On the one hand, it is “unfair” trade, and on the other hand, “protecting the environment”. The position that the WTO will support is not yet known. As for the actions of the United States, Europe and Mexico, many people in China have given violent attacks, most of which point to the issue of rare earth exports.

As a larger owner and producer of rare earth resources, China does not have pricing power; a very precious strategic resource, but it has long been sold at a fairly low price. This situation naturally does not need to change.

However, the US and Europe inks tell China not only to limit the export of rare earths, but also to include many raw materials such as coke, yellow phosphorus and fluorspar. These are high-energy, high-pollution resource-based products that cause serious environmental pollution. Under the background of increasing global concern about environmental issues such as climate warming, it is understandable to limit such high-pollution products. Therefore, since June 2007, the Chinese government has taken measures such as increasing export taxes and formulating export quotas in an attempt to change the unfavorable situation.

However, increasing export taxes and setting export quotas have naturally reached the goal of restricting the production and export of these raw materials to some extent, but it is still unclear whether it is sufficient to solve the above problems. The Wall Street Journal announced on the 5th that in the dispute between the United States, Europe and Mexico and China, China’s current export policy may be judged illegal. If China loses, the Chinese government may be forced to cut tariffs, otherwise it will face retaliatory trade sanctions.

Regardless of the outcome of this lawsuit, it may be necessary to reflect on and improve existing policies. In this dispute, the Chinese Ministry of Commerce has produced environmental protection cards. The author believes that "environmental protection" is not only a reason for increasing export taxes and setting export quotas, but also a major driving force for China to strengthen the domestic raw material industry. In other words, the development of rare earth and other strategic resources and environmental costs of high-pollution raw materials such as coke should be greatly improved, and resource taxes should be raised to curb the sale of raw materials from a cost perspective.

As far as rare earth resources are concerned, it is necessary not only to fully understand their strategic significance, but also to carefully study ways to protect such strategic resources. For example, formulate clear regulations, stipulate the scope, development and protection of strategic resources, and pay attention to minimizing the controversy of such initiatives and avoid providing truth to other countries. The US and Ou Mo's "complaints" are only caused by the inertia of long-term cheapness in China's resource trade including rare earths.

In other words, China, with its rapid economic development, also needs to import a large number of strategic resources from other countries. If we simply talk about protecting our country's strategic resources and neglecting to adopt more flexible and smarter means of protection, then the protection will inevitably lead to criticism from other countries and may bring some trouble to China's import of other countries' resources.

All in all, the goal of protecting resources and protecting the environment is reasonable, but for now, it seems more urgent that the means and methods of protection are more reasonable and less controversial and troublesome.

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