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The president of the soon-to-be established rare earth association is likely to be Gan Yong, vice president of the Chinese Academy of Engineering and chairman of China Steel Research Institute. Industry analysts believe that this signifies that the rare earth industry will increasingly be taken seriously by the regulators. The organization structure and management structure of the association also indicate that leading companies will have greater power in the future.
“In late July, the Ministry of Industry and Information Technology approved the application materials for the establishment of the rare earth industry association. The next step is procedural work.†An authoritative source in the Preparatory Committee of the rare earth association organised the report that the establishment of the association has entered the sprint phase.
It is worth noting that the Chinese rare earth associations follow the standard preparation of the national first-level trade associations. The finalized competent authority is most likely to be the Ministry of Industry and Information Technology rather than the China Nonferrous Metals Industry Association. This also means that although rare earths belong to a branch of non-ferrous metals, the rare earth associations will have a greater say than industry associations of other non-ferrous metals such as copper, aluminum, lead and zinc.
Authorities in the industry stated that the Association will provide enterprises with production guidance, market research, industry management, intermediary services, trade friction warnings, etc., and externally play a “bridge†role between companies and the government and domestic and foreign markets. In addition, the association can also exert greater influence on the key issues of the rare earth industry in the form of organizations, such as export prices and export quotas.
An insider of the China Nonferrous Metals Industry Association told the reporter that the preparation of the rare earth industry association had met with resistance. Because of the high level of preparation of rare earth associations, it will have an important impact on policy formulation. The competition among several major rare earth enterprises in China for the association’s discourse has once heated up. The focus of the controversy includes the level of the association, the organizational structure, and personnel appointment and dismissal.
“The key to the problem lies in the balance of power among all companies. Everyone hopes to have more right to speak.†The above sources revealed that the association was not formed in the form of a third party, but was directly initiated by some large companies. Because the association will have a great influence on the policies and measures related to the development of the company in the future, several companies are arguing over the distribution of power.
In the face of controversy, Baosteel rare-earth high-level people responded to this reporter: “Industrial associations are initiated by large companies and play a leading role, and SMEs are widely involved in foreign countries is a very mature model. Third-party organizations can not afford to open companies.â€
China is dealing with 90% of the supply of rare earths, which account for 20% to 30% of the world's reserves. Among them, heavy rare earth elements such as lanthanum, ytterbium, ytterbium, ytterbium, and lanthanum are basically unique to China. As the strategic value of rare earths is increasingly being explored, China's rare earth industry is experiencing a golden period of policy.
The preparation of rare earth industry association has been approved by the Ministry of Industry and Information Technology
According to an exclusive source from authoritative sources, the preparation materials for the China Rare Earth Industry Association were approved by the Ministry of Industry and Information Technology at the end of July and are currently waiting for final approval from the Ministry of Civil Affairs and other functional departments. This means that the establishment of the association has entered the sprint phase.