Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis
In the wake of the Global Financial Crisis, the Chinese government radically adjusted the regulatory framework of the domestic Rare Earth Elements (REEs) sector. This article investigates the reasons for regulatory adjustments and the impact on China's market power. The analysis of long-term RE...
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| Format: | Article |
| Language: | English |
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CBS Open Journals
2017-09-01
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| Series: | The Copenhagen Journal of Asian Studies |
| Subjects: | |
| Online Access: | https://rauli.cbs.dk/index.php/cjas/article/view/5398 |
| _version_ | 1797988771343368192 |
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| author | Roland Howanietz |
| author_facet | Roland Howanietz |
| author_sort | Roland Howanietz |
| collection | DOAJ |
| description | In the wake of the Global Financial Crisis, the Chinese government radically adjusted the regulatory framework of the domestic Rare Earth Elements (REEs) sector. This article investigates the reasons for regulatory adjustments and the impact on China's market power. The analysis of long-term REEs price and production trends illustrates four reasons for regulatory adjustments: the China discount, the need for industrial upgrading, growing domestic REEs demand and severe environmental pollution. The analysis of the effects of regulations shows that the restrictive trade regime has increased China's market power and ability to affect prices, which led to a redistribution of global welfare in favour of China. However, this market power is only temporary due to foreign countermeasures such as WTO-based allegations. |
| first_indexed | 2024-04-11T08:09:14Z |
| format | Article |
| id | doaj.art-71eba5fbefcb4499a75b911f4d0136ac |
| institution | Directory Open Access Journal |
| issn | 2246-2163 |
| language | English |
| last_indexed | 2024-04-11T08:09:14Z |
| publishDate | 2017-09-01 |
| publisher | CBS Open Journals |
| record_format | Article |
| series | The Copenhagen Journal of Asian Studies |
| spelling | doaj.art-71eba5fbefcb4499a75b911f4d0136ac2022-12-22T04:35:26ZengCBS Open JournalsThe Copenhagen Journal of Asian Studies2246-21632017-09-0135110.22439/cjas.v35i1.5398Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial CrisisRoland HowanietzIn the wake of the Global Financial Crisis, the Chinese government radically adjusted the regulatory framework of the domestic Rare Earth Elements (REEs) sector. This article investigates the reasons for regulatory adjustments and the impact on China's market power. The analysis of long-term REEs price and production trends illustrates four reasons for regulatory adjustments: the China discount, the need for industrial upgrading, growing domestic REEs demand and severe environmental pollution. The analysis of the effects of regulations shows that the restrictive trade regime has increased China's market power and ability to affect prices, which led to a redistribution of global welfare in favour of China. However, this market power is only temporary due to foreign countermeasures such as WTO-based allegations.https://rauli.cbs.dk/index.php/cjas/article/view/5398Chinese resource policyRare Earth Elementsreregulationtrade regime adjustmentsWTO |
| spellingShingle | Roland Howanietz Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis The Copenhagen Journal of Asian Studies Chinese resource policy Rare Earth Elements reregulation trade regime adjustments WTO |
| title | Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis |
| title_full | Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis |
| title_fullStr | Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis |
| title_full_unstemmed | Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis |
| title_short | Changes to the Regulatory Framework of the Chinese Rare Earth Industry after the Global Financial Crisis |
| title_sort | changes to the regulatory framework of the chinese rare earth industry after the global financial crisis |
| topic | Chinese resource policy Rare Earth Elements reregulation trade regime adjustments WTO |
| url | https://rauli.cbs.dk/index.php/cjas/article/view/5398 |
| work_keys_str_mv | AT rolandhowanietz changestotheregulatoryframeworkofthechineserareearthindustryaftertheglobalfinancialcrisis |