The global rare earth market is expected to grow from the $1.4 billion it was worth back in 2010 to $4.1 billion by 2017.
World Trade Organization Mining News
Beijing to set up tracing system to determine and certify the origin of the materials.
As a result, all rare earths producers inside and outside China are facing extremely challenging conditions, say insiders.
About 90% of China’s rare earth producers are currently operating at a loss as prices for the coveted elements continue to drop due to a global glut and illegal mining.
While analyst predict a rebound in hard-hit rare earth prices later this year, it is still unclear whether companies outside China, the world’s largest producer, will be able to challenge its dominance.
The long-awaited policy change comes after the World Trade Organization determined last year that the nation’s quota system violated trade rules.
Beijing has launched a five-month campaign that aims to finally crackdown on illegal extraction and smuggling of the coveted elements.
The World Trade Organization has not confirmed the news yet.
The U.S., Japan and the European Union have filed an official complaint at the World Trade Organization this morning, urging the body to take actions against China’s restrictions on these metals. President Obama warned China that it would not be allowed to gain a competitive advantage in world trade by "skirting the rules."