China is removing export taxes on tech metals as a immediate response to the recent WTO ruling. According to WTO, China had used export restrictions on tech metals to control key markets, push prices higher, and force the global industry to move operations to China.

1. Page 1
China may impose resource taxes on technology metals after
unfavorable WTO ruling
China- the world’s top producer and consumer of technology metals, is planning
dramatic changes in its domestic technology metals industry following an
unfavorable verdict by the World Trade Organization. After the WTO ruling on
export policies, the country is planning new counter measures.
The WTO ruled that China had used export restrictions on tech metals to control
key markets, push prices higher, and force the global industry to move operations
to China. As an immediate response to the ruling, China is removing export taxes
on tech metals. Instead, the country will concentrate on raising Chinese tech
metal producers’ prices China is likely to impose a resource tax in order to
compensate for any effect that the WTO ruling could have and keep prices at
sustained levels.
“Once the export tariffs are removed by the Chinese Government, a resource tax
is likely to be levied on the valuable resource, which is in line with WTO
regulations and has been adopted by other countries,” said Chen Weidong, a
professor in law at the Beijing-based University of International Business and
Economics.
Another major change in the government’s strategy is to shift its focus from
controlling exports to controlling production. China’s government is forcing many
of the smaller, unproductive operations to shut down and is focusing on
consolidation with the aim of solving the massive overcapacity in China’s industry.
The government has accelerated the push for consolidation in the industry by
giving its approval for three major producers to become conglomerates by year-
end to fortify available resources, combat smuggling and alleviate overcapacity.

2. Page 2
The establishment of tech metals conglomerates will improve the allocation of
China's tech metal resources.
Investors should benefit from this much-needed consolidation in the Chinese
industry. Output control measures of China should regulate production and help
increase prices. Chinese government’s proposed purchase of over 10,000 metric
tons of stock will also play to this effect
About Electio Middle East
Electio Middle East is an international commodity brokerage focusing primarily on
Technology Metals. Electio is the largest brokerage in its sector and the first
company worldwide to offer a niche investment platform enabling judicious
investors to diversify their portfolios into the Tech Metals Sector.