During the year 2013, the Chinese government started breaking down on
the smuggling of rare earth metals. It created a huge impact on the
Chinese government and they lost about 20,000 tons of rare earth oxides,
which were exported illegally. This can be considered as a huge amount
when compared to the countries legal rare earth oxide production of
81,000 metric tons in the same year.
From the statistical information, it has been identified that China
holds about 30% of the world’s rare earth reserves. After their
discovery of rare earth elements in 1980, they experienced a significant
growth in the production of rare earth metals to the market, until it
was cut down in 2013. According to Situation of Rare Earth Industry
Economy Operation in 2013, which is the annual report of Ministry of
Industry in China, the total value of the exports were estimated about
12.6 billion dollars per year. However, the Chinese government put some
restrictions to their rare earth element exports and it has created a
wide range of illegal activities. Most of these illegal activities
rotate around crimes that target mining activities. Then these rare
earth metals are exported in an illegal manner to different countries.
The other countries who pioneer in motor and electronic industry prefer
to import such rare earth metals because they can reduce the production
cost by a great amount.
However, smuggling rare earth elements have created a huge impact on
the economy of China. The Chinese government implemented these
restrictions in order to experience a boost in the economy during the
next few years. Unfortunately, these illegal exports have put the
Chinese economy in trouble and the government is looking for a
convenient solution to get rid of this hassle.
According to the reported instances, smuggling forced the government
of China to cancel 161 rare earth element licenses within the year 2013.
In addition, 127 different companies were orders to cease their
production activities until rectification. In addition, they reduced the
production quotas to fewer than 16,000 tons and they are in the process
of cutting down that amount further in 2014. The government of China
lost 1.3 billion dollars within 2013 and they are trying to reduce this
loss caused by illegal activities during 2014 by lowering the prices.
Moreover, a large number of campaigns have been started to reduce the
short term effects. The responsible authorities are also forcing the
government to implement necessary laws and regulate the industry as soon
as possible.
About Stanford Magnets:
Based in California, Stanford Magnets has been involved in the R&D and sales of licensed Rare-earth magnets,
Neodymium magnets and SmCo magnets, ceramic magnets, flexible magnets
and magnetic assemblies since the mid of 1980s. We supply all these
types of magnets in a wide range of shapes, sizes and grades.
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