Kangyi: review and Prospect of China's Nonferrous Metals Industry after China's entry into WTO

Author: Kang Yi, former president of China Nonferrous Metals Industry Association

On December 11, 2001, China formally joined the (WTO), of the World Trade Organization and became a 143member. This is an important milestone in the process of China's reform, opening up, and socialist modernization. Over the past 20 years since China's entry into the WTO, China's development achievements have attracted worldwide attention, created a great miracle, effectively promoted China's position in the global economic system, and opened a new chapter for China's participation in global economic governance.

In the 20 years since China's entry into WTO, China's non-ferrous metals industry has seized the opportunity of development, continuously deepened reform and opening up, gave full play to its own advantages, and made use of two kinds of resources and markets at home and abroad to deeply participate in the division of labor system of the global non-ferrous metals industry. continue to expand comprehensive strength, international influence and market competitiveness. 20 years of hard work and forge ahead. China's non-ferrous metals industry has become the largest producer, consumer and trading country of non-ferrous metals in the world, and has made positive contributions to the economic development of our country and the cause of non-ferrous metals in the world.

20 years after China's entry into WTO: great changes in China's Nonferrous Metals Industry

Before China's accession to the WTO, many people were worried about the "wolf" after China's accession to the WTO and worried about the impact on the non-ferrous metals industry. Now, it seems, this kind of worry is completely superfluous. With China's accession to the WTO, the non-ferrous metal industry has not been greatly affected, but the forced mechanism has brought rare opportunities for the development of the non-ferrous metal industry.

The 16th CPC National Congress further strengthened the reform and opening up, improved the socialist market economic system and mechanism, and maintained a sustained and rapid development of the non-ferrous metals industry in the 10 years before China's entry into the WTO, driven by the strong domestic demand of domestic infrastructure construction and real estate.

In the second half of 2008, the international financial crisis swept the world, which had a serious impact on China's non-ferrous metals industry. With the strong support of the State Council and relevant ministries and commissions and taking decisive measures, the non-ferrous metals industry has achieved positive growth in a relatively short period of time.

Since the 18th CPC National Congress, socialism with Chinese characteristics has entered a new era and economic development has entered a new normal. The non-ferrous metals industry comprehensively implemented the new development concept, took the supply-side structural reform as the main line, vigorously promoted the "three go, one drop and one supplement", and achieved remarkable results. Profound changes have taken place in the development pattern of non-ferrous metals industry. The driving force of development has changed from investment-driven to innovation-driven; the upgrading of industrial structure has been accelerated to energy-saving, low-carbon and green; products have changed to medium-and high-end; industrial layout has been optimized, from domestic to "Belt and Road Initiative" international production capacity cooperation; the speed of development has changed from high-speed growth to high-quality development.

In the 20 years since China's entry into WTO, the development of non-ferrous metals industry has made brilliant achievements and great changes in appearance.

(1) the comprehensive strength of the industry has been significantly enhanced

The economic benefit has been significantly improved.

In general, the operating income of non-ferrous enterprises increased from 218.3 billion yuan in 2020 to 5.3707 trillion yuan in 2020, with an average annual growth rate of 17.4 percent, and realized profits increased from 6.6 billion yuan in 2020 to 161.1 billion yuan in 2020, with an average annual growth rate of 17.3 percent. The total volume of import and export trade increased from US $14.3 billion in 2000 to US $133 billion in 2020, with an average annual growth rate of 11.8%.

The status of enterprises in the world has improved significantly.

There are 11 Chinese enterprises in the 2002 Fortune 500, not a single non-ferrous enterprise is on the list, and there are 143Chinese enterprises in the 2021 Fortune 500, ranking first in the world. Among them, there are 9 non-ferrous enterprises: China Minmetals Group 65, Zhengwei International Group 68, Aluminum Corporation of China 198, Jiangxi Copper Group 225, Weiqiao Venture Group 282, Jinchuan Group 336, Tongling Nonferrous Group 407, Hailiang Group 426, Zijin Mining Group 486.

In 2020, China occupies 4 of the top 10 refined copper enterprises in the world, while Jiang Copper, Tongling Nonferrous Metal and Chinalco (Chinalco) rank in the top 3; China occupies 5 of the top 10 electrolytic aluminum enterprises in the world, Chinalco and Weiqiao rank in the top 2; among the top five global alumina companies, there are 3 in China, and Chinalco and Weiqiao are in the top 2. In 2021, there are 11 non-ferrous enterprises in the top 100 Chinese multinational corporations and their transnational index. Among them, the transnational index of Luoyang molybdenum industry is as high as 73.9%, and Zijin mining industry is 51.1%, both of which reach and exceed the international average.

(2) Scientific and technological innovation leads the industry to upgrade in an all-round way

Since China's accession to the WTO, basic research has been strengthened, a number of common key technologies have been successfully developed and applied to production in original innovation and collaborative innovation, and industrial upgrading has been realized. Among them, electrolytic aluminum super-large 600 kiloampere complete sets of technology, is the world's first, international leader.

The independently developed "emergency flasher" suspension copper smelting, oxygen bottom blowing, double bottom blowing and "two-step" copper smelting technology have reached the world's advanced level. Self-produced high-end materials have been widely used in aerospace, automotive, high-speed rail and new energy batteries and other fields.

(3) Green and low-carbon development has achieved remarkable results.

Since China's entry into the WTO, we have relied on scientific and technological progress, adhered to source reduction and process control, and promoted energy conservation and emission reduction in the whole industry, as well as reduction, harmless, resource treatment and effective utilization of waste residue, waste water and waste gas. Enterprise cleaner production, green mine construction and comprehensive utilization of renewable resources have achieved remarkable results.

Remarkable results have been achieved in saving energy and reducing consumption. The comprehensive AC power consumption of electrolytic aluminum has reached the leading level in the world. In 2020, the comprehensive AC power consumption of electrolytic aluminum in China was 13518 kWh / ton, which was 1961 kWh / ton lower than that of 15479 kWh / ton in 2000, and 73 billion kWh was saved. In 2020, the comprehensive energy consumption of copper and lead was 271kg standard coal and 331kg standard coal, respectively, 462kg standard coal and 324kg standard coal compared with 733kg standard coal and 655kg standard coal in 2005, saving 3.548 million tons of standard coal and 993000 tons of standard coal. In 2020, the comprehensive energy consumption of electric zinc was 819kg standard coal, which was 1134 kg lower than that of 1953 kg standard coal in 2005, saving 5.622 million tons of standard coal.

(4) participate in the construction of "Belt and Road Initiative"

Speed up the internationalization of enterprises

Since China's accession to the WTO, non-ferrous enterprises have "gone out" to seek the development of mineral resources abroad. Especially in recent years, non-ferrous enterprises have made full use of the favorable opportunity to acquire overseas mineral resources by means of overall acquisition, equity mergers and acquisitions, project bidding and so on.

China Minmetals Group, Chinalco Group, China Color Mining Group, Zijin Mining, Luoyang Molybdenum Industry, Shandong Weiqiao, China Railway Resources Huagang Mining and other enterprises have obtained a large amount of copper, aluminum and molybdenum mineral resources and invested in setting up factories abroad. It has contributed to the development of enterprises and the increase of local taxes and employment. The nine non-ferrous enterprises selected in the 2021 Fortune 500 have 71000 overseas employees, more than 90% of whom are local employees.

According to incomplete statistics, enterprises have acquired more than 100 million tons of copper resources abroad, forming rights and interests of more than 1.8 million tons of mineral copper production capacity, more than 8 billion tons of rights and interests bauxite resources, and more than 60 million tons of rights and interests bauxite mineral resources. the guarantee capacity of mineral resources has been greatly enhanced.

Twenty years after China's entry into WTO: China's non-ferrous metals industry has made important contributions to the world.

(1) after China's accession to the WTO, China's output of non-ferrous metals has increased rapidly, which has become the main driving force for the growth of global copper and aluminum production and consumption. In 2002, China's refined copper consumption surpassed that of the United States. In 2006, China's refined copper production surpassed that of Chile, making it the largest copper producer and consumer in the world.

According to statistics, China's annual output of refined copper is 10.03 million tons in 2020, an increase of 8.66 million tons over 2000, and the world's refined copper output has increased by 9.6 million tons in the past 20 years. In the 20 years since China's accession to the WTO, the increment of China's refined copper has contributed 90.2% to the world's copper growth. Over the past 20 years, China's copper consumption has increased by 10.97 million tons, while the world's copper consumption has increased by 9.8 million tons over the same period. In the 20 years since China's entry into WTO, excluding the increase of copper consumption in China, the copper consumption of other countries in the world has been reduced by 1.17 million tons in the same period. China's copper consumption accounts for 111.9% of the world.

In 2001, the output of primary aluminum in China surpassed that of Russia and became the first producer in the world. In 2004, China's primary aluminum consumption surpassed that of the United States, becoming the world's largest primary aluminum consumer.

In 2020, China's primary aluminum output reached 37.25 million tons, an increase of 34.26 million tons over 2000. Over the same period, the world's primary aluminum production increased by 41.66 million tons. Over the past 20 years since China's entry into the WTO, the increment of China's primary aluminum output has contributed 82.2% to the world. Over the same period, China's primary aluminum consumption increased by 34.425 million tons, while the world's primary aluminum consumption increased by 39.986 million tons. In the 20 years since China's entry into WTO, the increment of China's primary aluminum consumption has contributed 86.1% to the world.

(2) 20 years after China's entry into the WTO, the non-ferrous metals industry has made fruitful achievements in scientific and technological innovation. In particular, the technology and equipment of large-scale pre-baked cells with independent innovation of electrolytic aluminum are exported abroad and factories have been set up in Iran, India, Vietnam, Kazakhstan and other countries. In recent years, the 600-kiloampere super-large aluminum reduction cell developed by ourselves has been serialized, which is the first in the world and a leader in the world, which has played a leading role in the development of aluminum electrolysis technology in the world.

(3) in the 20 years since China's accession to the WTO, the non-ferrous metals industry has successively eliminated its backward production capacity and realized the overall upgrading of the industry. In 2005, electrolytic aluminum completely eliminated the backward self-baking aluminum reduction cells, which was 3-5 years earlier than that of Norway and Canada, and was fully affirmed by the International Aluminum Association. In 2014, China took the lead in eliminating pre-baked cells of 160 kiloamperes and below in the world. At present, the unit comprehensive energy consumption and environmental protection index of aluminum electrolysis production in China are in the leading level in the world, which has contributed to the green and low-carbon development of the global aluminum industry.

20 years after China's entry into WTO: the main experience in the Development of China's Nonferrous Metals Industry

In the 20 years since China's entry into WTO, the experience accumulated in the development of China's non-ferrous metals industry is very precious, mainly the "Ten persistence".

Adhere to independence and self-reliance;

Persisting in reform and opening up and deepening reform;

Adhere to the two "unwavering" principles;

Adhere to scientific and technological innovation, self-reliance and self-improvement;

Insist on resource guarantee and self-control;

Adhere to the sustainable development of green and low carbon;

Adhere to the digital transformation and upgrade in an all-round way;

Adhere to the standardized operation of the capital market;

Adhere to the strategic support of high-end talents;

Adhere to the improvement of international production capacity cooperation.

The above "Ten principles" is a summary of the long-term practice of the non-ferrous metals industry, which needs to be further enriched and developed in the future.

Looking to the future, we are full of confidence. China's non-ferrous metals industry has the most complete industrial system in the world; a solid material foundation precipitated by more than 70 years; a precious experience of more than 40 years of reform and opening up; a scientific and technological team with large scale, optimized structure and good quality; there are a large number of entrepreneurs with patriotic feelings, courage to innovate, integrity, responsibility and international vision. We firmly believe that in the near future, we will be able to build a powerful country in the non-ferrous metals industry.

At present, China's non-ferrous metals industry is in a new era from big to strong. Through the efforts of the 14th five-year Plan, by the year 2025, the comprehensive strength, scientific and technological innovation capability, and international competitiveness of the non-ferrous metals industry have increased significantly. By 2030, the overall level will reach the international advanced level, and some of them will reach the international leading level. By 2035, it will basically become a world power in non-ferrous industry. The main fields and key varieties form an internationally leading technological system, industrial system and supply chain system, making positive contributions to the realization of China's second century goal and the great rejuvenation of the Chinese nation.