Tungsten industry in China's foreign trade restructuring and industrial upgrading explore policy recommendations

After having been found in violation of its WTO obligations in the WTO dispute settlement case on Measures Related to the Exportation of Various Raw Materials in 2012,China has been confronted with the need to adapt its trade policies in this regard,with resulting policy constraints potentially creating a less advantageous trade environment in the world market for Chinese industries.This paper factually assesses China's Tungsten industry taking into account reserves,production and exportation,and then goes on to identify several issues with regard to the future further development of that industry.These issues include:the circumvention of the state restrictions on tungsten exploitation,the high degree of flexibility in customs valuation,low value-addition in export,and others.The paper suggests that China's tungsten industry should strategically aim to graduate from the lower-end to the high-end of the value chain.To address the problems identified,the paper formulates the following policy recommendations:enhancing the competitiveness of Chinese tungsten industry by encouraging and supporting concentration/mergers of enterprises;responding to trade disputes more actively and appropriately with a view to creating a more favourable environment for the industry;and improving the administration of tungsten exportation and optimising the export quota allocation mechanism.