Explainer: Why Beijing cut the tax rate on rare earths amid the escalating US-China trade war

Last month, the Chinese government cut the resource tax on companies mining heavy rare earths to 20 per cent from 27 per cent, as part of its efforts to support the vital sector and maintain the country’s dominance amid a raging trade war with the US.The Post spoke to a number of industry observers, who agree that the latest policy move, which takes effect next September, is meant to boost production and make it economically feasible for miners to exploit low-grade deposits.Right now, the cost…

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