CHINA will continue to crack down on illegal mining, processing and sales of rare earth elements, experts said yesterday.

In the 13th Five Year (2016 to 2020) period, Chinese ministries and departments will enhance cooperation, increase inspection, and take a zero-tolerance approach toward illegal mining of rare earth metals, said Zhou Changyi, head of the department of raw materials under the Ministry of Industry and Information Technology.

A tracking system will also be implemented to trace the source of rare earth elements to curb illegal mining, he said.

“The next few years are an important period for the overhaul of China’s rare earth industry and promoting its healthy development,” he said.

China is the world's largest rare earth producer and exporter, but the industry is beset by numerous problems, such as illegal mining, smuggling and a lack of competitiveness due to weak research and development. Excessive exploration has also caused environmental damage.

“Illegal mining is the principal reason for gloominess in the industry,” Zhou said.

During the 12th Five-Year Plan period, 14 illegal rare earth mines and 28 companies were closed. More than 36,000 tons of illegal rare earth products were seized, and 230 million yuan in fines were imposed, according to statistics from the ministry.

Monitoring systems have been created in key mining districts such as Baiyun Ebo in Inner Mongolia, Ganzhou in Jiangxi Province, and Maoniuping in Sichuan Province.

 BITCOIN, a Florida judge says, is not real money. Ironically, that could provide a boost to use of the crypto-currency which has remained in the shadows of the financial system.

The July 22 ruling by Miami-Dade Circuit Judge Teresa Pooler means that no specific license is needed to buy and sell bitcoins.

The judge dismissed a case against Michel Espinoza, who had faced money laundering and other criminal charges for attempting to sell US$1,500 worth of bitcoins to an undercover agent who told the defendant he was going to use the virtual money to buy stolen credit card numbers.

Espinoza’s lawyer Rene Palomino said the judge acknowledged that it was not illegal to sell one’s property and ruled that this did not constitute running an unauthorized financial service.

“He was selling his own personal bitcoins,” Palomino said. “This decision clears the way for you to do that in the state of Florida without a money transmitting license.”

In her ruling, Pooler said, “this court is unwilling to punish a man for selling his property to another, when his actions fall under a statute that is so vaguely written that even legal professionals have difficulty finding a singular meaning.”

She added “this court is not an expert in economics,” but bitcoin “has a long way to go before it is the equivalent of money.”

Bitcoin, whose origins remain a mystery, is a virtual currency that is created from computer code and is not backed by any government.

Advocates say this makes it an efficient alternative to traditional currencies because it is not subject to the whims of a state that may devalue its money to cut its debt, for example.

Bitcoins can be exchanged for goods and services, provided another party is willing to accept them, but until now they have been used mostly for shady transactions or to buy illegal goods and services on the “dark” web.

Bitcoin was launched in 2009 as a bit of software written under the Japanese-sounding name Satoshi Nakamoto. This year Australian programer Craig Wright claimed to be the author but failed to convince the broader bitcoin community.

In some areas of the United States bitcoin is accepted in stores, restaurants and online transactions, but it is illegal in some countries, notably France and China.

It is gaining ground in countries with high inflation such as Argentina and Venezuela.

But bitcoin values can be volatile. Over the past week its value slumped 20 percent in a day, then recouped most losses, after news that a Hong Kong bitcoin exchange had been hacked with some US$65 million missing.

Arthur Long, a lawyer specializing in the sector with the New York firm Gibson Dunn, said the July court ruling is a small victory for bitcoin but that it’s not clear if the interpretation will be the same in other US states or at the federal level.

“It may have an effect as some states are trying to use existing money transmitting statutes to regulate certain transactions in bitcoin,” Long said.

Charles Evans, professor of finance at Barry University, said the ruling “absolutely is going to provide some guidance in other courts” and could potentially be used as a precedent in other countries to avoid the stigma associated with bitcoin use.

 CHINA’S Commerce Ministry said yesterday it “regrets” the European Commission’s decision to put anti-dumping duties on Chinese cold-rolled steel plates, the latest spat between the trade partners battling a global steel glut.

China’s steel industry, a major employer, has struggled to meet targets to reduce its overcapacity, and rising prices for steel have encouraged firms to ramp up production for export.

Rival producers have accused China of selling in export markets at below cost after slowing demand at home, forcing job cuts and plant closures elsewhere amid a global crisis in the industry.

The commission said yesterday that it would levy retroactive anti-dumping duties on imports of certain cold rolled steel products from China and Russia after a year-long investigation triggered by a claim from European steel lobbying group Eurofer.

“In the wake of the global steel overcapacity crisis, the commission is applying the trade defense instruments to re-establish a level-playing field between EU and foreign producers,” it said in an emailed statement.

The duties of between 19.7 percent and 22.1 percent on Chinese firms Angang Group and Shougang Group would weaken the European Union’s downstream manufacturing competitiveness, the ministry said in a statement on its website.

“This move amplifies legal uncertainty and gravely affects normal international trade,” the ministry said.

It called on the EU to “avoid abusing trade remedies and sending a wrong signal” to the world, and added that it was willing to work with the EU to appropriately handle current problems facing the steel industry.

 CHINA aims to encourage private investment in infrastructure construction and advanced industries to counter the effects of a slowing economy, said the National Development and Reform Commission in a report yesterday.

The government will push for proactive fiscal policies to boost private investment, and also ease entry thresholds for private capital in infrastructure and social construction in electricity, telecommunication, transport, oil and gas, health care, and education.

Meanwhile the government will also prioritize advanced industries such as energy saving and intelligent manufacturing to attract investment.

To spur the development of these industries, taxes will be cut for relevant startups and subsidies will be provided to high-tech companies to support research and development.

“Encouragement of private investment and efforts to foster advanced industries will be pushed simultaneously to boost investment in them,” the report said.

The NDRC, the top economic planner, also said the government will push banks to offer low-interest loans to prominent small and medium firms as well as urge private investors to support them.