Hongpo Shen

About Hongpo Shen

Hongpo Shen is a Chinese freelance writer, professional blogger focusing on China's rare earth market, and previously held 15 years of experience in the local government of Shanghai, China. whose degrees include International Economics & Trade and Political Science. He has been an editor for InvestorIntel since May 2012.

Rare Earth Price Collapse Signals China’s Upcoming Economic Crisis

China has over the past few decades relied upon a gray “concrete economy”, such as real estate and infrastructure investment, and upon its manufacturing sector, to drive its extraordinary economic growth. But now, those usual economic stimuli have faltered in the country, with many local governments mired in debt. We tie that slowdown to the failure of Beijing’s rare earth industrial policies. Those policies had been originally aimed at supporting the restructuring and upgrading of traditional Chinese industries to high-end manufacturing with increased added value, to create a global competitive advantage for the Chinese manufacturing industries. They are not working.…

Beijing’s failure to control illegal rare earth supply results in soaring exports

China’s customs administration published preliminary exports data on Saturday, shows that the country’s rare earths exports in July, by volume, climbed to a three-year high on a monthly basis. The soaring exports comes at a time of general anxiety in the Chinese rare earths industry, where Beijing’s failure to control rare earths, have resulted in a collapse in rare earth prices. Following two consecutive monthly increases (2618 tons in May and 3219 tons in June), in July alone, China’s rare earths exports surged 103.39% year on year to 3,659 tons, hitting the highest level since 2012. However, with an average…

China’s six major rare earth companies prepare for reorganization

2015-5-14-Hongpo China, the world’s biggest supplier of rare earths, has set its mining quota of rare earths for 2015 at 105,000 tons. The full year quota is unchanged from that in 2014, according to a statement released by the Ministry of Land and Resources (MLR) on their website on Thursday. The rare earth mining quota includes 87,100t for the so-called rock-type light rare earths(LRE’s), and 17,900t for the ion-absorption-type medium and heavy rare earths (HRE’s), according to the ministry. The tungsten concentrate mining quota was set at 91,300t in 2015, they reported. The authorities have already approved the plan for reorganization of six rare earth companies, in…

Chinese rare earth tax numbers are in.

TAX As expected, China’s Ministry of Finance and the State Administration of Taxation last week jointly unveiled the rates of the new resource tax on rare earths, tungsten, and molybdenum production which took effect May 1, 2015, replacing the previous rare earths export tariffs of between 15% and 25% that had been eliminated in order to comply with last year's WTO ruling. “The new resource taxes for light rare earths are set at 11.5%, 9.5%, and 7.5%, respectively in Inner Mongolia Autonomous Region, Sichuan Province, and Shandong Province, while for medium and heavy rare earths it is generally set at 27%.…

China to levy new resource tax on rare earths May 1st

Today the State Council, China's cabinet, vowed to reform tax on rare earths, tungsten and molybdenum at an executive meeting of the State Council chaired by Premier Li Keqiang. In this meeting, it was announced that China will deploy the new resource tax on these technology metals on Friday May 1, 2015. The new resource tax will be calculated on the basis of prices, rather than production volumes. The new rare earths resource tax reform will benefit major rare earth resource regions in China. The intent is to levy a resource tax based on price to help prevent over-consumption and…

The new Chinese rare earth resource tax to ‘sharply’ increase prices

The export tariffs of rare earths will officially be abolished in May. Last week, on April 23, China’s Ministry of Finance (MOF) issued the “Notice of the Customs Tariff Commission”. The intent of this document is to officially end rare earth export tariffs to comply with the World Trade Organization (WTO) ruling last year. In response to the rare earth case brought by the U.S., European Union and Japan against China, the Chinese Ministry posted on their website that “Upon the approval by the State Council, with effect from May 1th, 2015, the export tariffs of several products, including Iron…

China’s six giants to further control domestic rare earths production quotas

The First Batch of Total Amount Control Planning For Rare Earth Production 2015 China's six rare earths giants will further to control domestic rare earths production quotas as the Chinese government has allotted 94.69% (or 49,712 tons) of mining quota and 93.29% (or 46,690 tons) of smelting and separation products quota to them, respectively. On April 10, China's Ministry of Industry and Information Technology (MIIT) released the circular on “the first batch of total amount control planning for rare earth production 2015”, which sets a total of 52,500 tons of rare earth oxides (REO) to miners and 50,050 tons of REO to smelters in the first six months of the year. The MIIT…

A Turning of Japan’s Heavy Dependence on Chinese Rare Earths

Japan's Rare Earths Import Statistics in 2014 It ought to be obvious to all that Japan has been highly dependent on rare earth imports from China over the past few years. However, change is now happening quietly as this started when the Japanese began to buy more rare earths from Malaysia in 2014. Figures from an annual trade statistics 2014 published by Japan's Ministry of Finance shows that the country’s imports amount of rare earths from Malaysia skyrocketed 13,433.33% to 1,218 tons, compared to a year earlier. With an increase of 51.82% from a year ago, Japan totally imported 22,307 tons of rare earths last year, remaining…

Chinese rare earths exports dramatically decrease while global demand for rare earth products increase

Chinese Rare Earth Oxides Exports in 2014 Table On March 23th, Chinese customs authorities released data for February, showing that the country’s rare earths exports decreased 15.78% from a year ago to 1,363 tons of rare earth to the U.S. and fell 27.69% to 1,130 tons of rare earth to Japan in the first two months of the year, respectively. From January to February this year, China’s rare earth exports totaled 3,509 tons, a drop of 22.1% when compared to the same period of 2014. Of which Japan's imports of rare earth from China accounting for about 32.2 % and the U.S. accounting for about 38.84 %. China's…

China Sets First 2015 Rare Earth Production Quota

China's Ministry of Industry and Information Technology (MIIT) has announced the first batch of rare earth production quotas for this year which includes 52,500 tons (REO) of rare earth mining quotas and 50,050 tons (REO) of rare earth smelting and separating production quotas, the figure is about half of the last year’s total quota. China set its total production quotas of rare earths at 105,000 tons (included 87,100 tons of the rock-type light rare earths and 17,900 tons of the ion-absorption-type medium and heavy rare earths) last year. The country's first batch of rare earth mining quotas was 46,900 tons,…