SCIO briefing on development of industry and information technology
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E-mail China.org.cn, March 3, 2021
Asahi Shimbun:
The Ministry of Industry and Information Technology issued a draft version of the regulations on rare earth management to gather public opinions in January. Why did you choose this time? Is it to counter the United States? In addition, more and more people in Japan are worried that China may reduce exports? What is your response to this? Thank you.
Xiao Yaqing:
Thank you for your question. In January this year, the Ministry of Industry and Information Technology issued the draft version of the regulations on rare earth management to gather public opinions. Everyone knows that rare earth is a strategic resource. The purpose of the regulations is to regulate the industry in accordance with the long-term development strategy of rare earth and the demands of the market and address problems in our actual development. The regulations aim to allow the market to play a decisive role in the allocation of resources. Of course, the government must also play a good role in maintaining market order, relaxing or tightening regulation as is necessary. China is a large rare earth country with the most resources and the most export. Some countries say that we restrict exports, but most of the things you buy come from China. First of all, there is a phenomenon worthy of our attention. Our rare earth does not sell at a "rare" price, but at an "earth" price. This is because of vicious competition and competitive price reduction. Precious resources are wasted. Second, if you have the opportunity to take a look at our rare earth production enterprises, you will find there are indeed many environmental protection issues, and local people have very strong complaints. The rare earth market is good, so enterprises mine hard, dig hard, and refine hard. Therefore, there are many complaints about environmental protection. Third, why is rare earth called rare earth? Because it is a rare resource. Now they are being exploited in disorder and resources are being wasted. Some only harvest the richest areas. In Chinese language, it is called "digging out cabbage heart." With the best part taken away, the efficiency of the comprehensive utilization of resources is very poor. From a long-term perspective, after a few years of use, the comprehensive utilization of resources will also be problematic. Fourth, the development of rare earth has a lot of low-level repetitions, while high-level rare earth products are indeed relatively few, which is not conducive to technological innovation and sci-tech progress. Therefore, we should learn from Japanese companies in this regard. Many Japanese companies have done a lot of work on high-end rare earth products.
The Ministry of Industry and Information Technology, as regulator of the industry, needs to perform its duties well and do its own things well. I just talked about the international division of labor in the industrial chain. The globalization of the economy is a general trend. In this process, we are all closely interconnected. We need to join hands to respond to the various needs of resources, energy and products in the process of economic development and market development. We need to address our current problems towards healthy and sustainable development. Thank you.
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