China's Ministry of Industry and Information Technology has formalized a new law that reduces the resource tax on heavy rare earths from 27 percent to 20 percent, which Chinese analysts say is a move that shows China's resolve to support the industry's development amid a heated trade war. The new law was passed by the 12th meeting of the Standing Committee of the National People's Congress on August 26, and it will take effect on September 1, 2020. The resource tax on light rare earths remains unchanged. China is the world's largest producer and exporter of rare earths. Its mines account for about 70 percent of global output. It said the US from 2014 to 2017 sourced 80 percent of its rare-earth imports from China, according to US government statistics.