The whole industrial world - Europe, United States, Japan - is dependent on China's rare earth exports. But as it industrializes rapidly, domestic consumption has tripled over the past five years and its own consumption will match production within a few years. Beijing is now reducing exports as it places priority on domestic supply. THere is a growing shortage and prices are climbing.
Deng Xiaoping was prescient when he equated the country's rare earths with the oil of the Middle East in 1992. As we know, the Middle East has been militarily occupied to secure the steady flow of oil. China may be risking its independence if tries to restrict the flow of rare earths.
4 comments:
The Chinese dumped product on the market to force Western producers to shut down, but those old mines still exist and can be restarted. I have heard Lynas recommended as a possible rare earth investment but I don't have any position myself. China's dominance in electronics is much more worrisome. There will never be a war between America and China because America depends on China's manufacturing too much.
rare earths may not be necessary if some of the new materials technology pan out.
I dont see the connection between industrial dependence and peace.
Neither do I, since the classes that benefit from closer dependence - the young, the socially and educationally mobile, are not the same as the ones that suffer losses as a result. Forcing people who don't care for each other to premature union is a recipe for disaster.
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