In November 2012, the government of China announced a change in private-sector financial support.



  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 09 Nov 2012 | Removal date: open ended

Instrument unclear

On November 21, 2012, the Ministry of Finance (MOF) and the Ministry of Industry and Information Technology (MIIT) jointly released theMeasures on Administration of Special Funds for Supporting Rare Earth Upgrading ('Measures'). In accordance with these Measures, special funds will flow from the central government to local governments and companies that meet certain conditions. The decree went into effect on 9 November 2012.

Specifically, the following projects are entitled to receive financial support from the central government:
1. Design of a regulatory system among local governments for the purpose of protecting rare earth resources and supervising mining activities (financial support up to 20% of the project investment). 
2. Cleaner production transformation of rare earth selecting and melting production systems. Enterprises that pass the State Environmental Protection Verification are entitled to the following sums:

  • for mining: RMB1000 yuan / ton (by rare earth oxides REO),
  • for smelting separation: RMB1,500 yuan / ton (REO rare earth oxides),
  • for metal smelting: RMB 500 yuan / ton.

3. Research and development of key technologies and standards on green, efficient rare earth mining and selection. R&D and industrialization of high-performance rare earth materials and device technology, with relevant technical indicators meeting international standards. Qualified projects are entitled to financial support for a maximum of 20% of the project's actual investment and in any case no more than RMB 10 million.
4. Laboratories established by rare earth enterprises for research and development targeted at high-end rare earth materials and devices. The financial support for a qualified project shall generally not be more than 50% of the R&D investment and is capped at RMB 10 million per project in one year.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.