Posting in Energy
China has extended its bank on rare earth elements to the United States, escalating a trade dispute between the world's two largest economies.
After expressing its disappointment about U.S. claims that it may be unfairly subsidizing its renewable energy industry, China has upped the ante with all out economic warfare. China has today extended its ban on the export of rare earth elements to the United States.
China is the world's leading source of rare earth metals, which are used to manufacture many staples of the modern world ranging from electronics, hybrid cars, solar panels and wind turbines to guided missiles. The rest of the world lags far behind its production capacity.
Last month, China froze shipments of the metals to Japan following a border dispute. Its tussle with the United States stems from dueling accusations about which country is trading more unfairly than the other. The Obama administration called on Congress take action to diversify sources of supply.
China's decision to extend its ban on rare earth element exports to the United States is stunningly disappointing. Resources are finite, and will only become more scarce in the future. I hope that cooler heads will prevail, and cooperation and trade will trump confrontation.
The world faces an unprecedented energy (and environmental) problem, but the world's two largest economies are squabbling. We can do better, even if past is precedent.
Oct 20, 2010
This may be part of China's plan to gain the IP associated with the high tech products that use the rare earth materials.
This is really just a ploy by China to keep a stranglehold on global manufacturing. They would rather have the rare earth elements transformed into finished products by their factories than by factories outside of China.
The USA has played world trade to suit itself for many years and subsidised many things (especially agriculture) to play local politics. Now things are a bit adverse the USA is bleating like a pack of lost sheep. baaa baaaaa. Suck it up and sort out your economy and control the Wall St parasites. roflmao
The party is over boys, they have won the battle, the US as the dominant world power is dead, the head just doesn't know it yet.
Why is anyone surprised by this? China has *always* had an aggressive policy towards the west. With the end of the cold war and the new generation taking over, the USA has supplanted Russia as their major target. Get used to this type of shenanigan, you'll see a lot more of it.
The world has become a giant recurring "good cop, bad cop" routine: Republicans and Democrats, US and China, Fox and CBS...the list goes on and on and as long as you all continue doing your jobs then they have no reason to change the routine. "The human race is the most immature species I've ever met."
It's so interesting how even just 10 years ago, China was not taken as seriously as it is now. It's amazing how much economic power commands respect.
Good just in time for this "The Mountain Pass rare earth mine is a an open-pit mine of rare earth elements (REEs) on the south flank of the Clark Mountain Range and just north of the unincorporated community of Mountain Pass, California, United States. The mine, owned by Molycorp Minerals, once supplied most of the world's rare earth elements. It is presently inactive, but is projected to reopen in 2011."
that they will not have a problem continuing to send us they lead, cadmium, and melamine laces products. Thank goodness for that!
And keeps their currency artifically low. Both of which are forms of economic warfare. Since they've been doing so for decades, they've been winning the war; as reflected in the trade imbalance and the massive amount of U.S. debt China holds. Going for a ban on an important import for the U.S. ups the ante. What it will do is make those materials scarce and expensive in the U.S. Our country will then have two choices, cave into China's demands, or develop other resources to supply those materials. If we develop other sources, China loses big time. But so does every person holding stock with those Chinese companies. (Guess who that is, yep, our politicians trying to get China to play nice in the first place.) The timing of this event is important too. It will effect how people vote come November.
I guess the citizens who opposed NATO and GATT 9 to 1 and our fearless leaders were wrong then? Perhaps the days of corporations chartered in and loyal to nation states were better for US citizens than International Corporations and the New World Order? Maybe America would have been better served by not opening China to world trade and keeping jobs at home? With sarcasm dripping!!!!
Then read this, is this a conderdition or what? http://www.straitstimes.com/BreakingNews/Asia/Story/STIStory_588183.html
To build up the US manufacturing capability. I read reports that China bought a US rare earth company and shipped everything to China. The situation is a bit like the Japanese and rubber before WWII; the US and others found other ways to make rubber substitutes. The US is not in a good position since China has invested in a lot of the US debts and they import so much to the US. The US would not be able to win a trade war if were to happen soon. China is stretching trade rules and it will get worse. The US can increase jobs if more of manufactured goods are made here and the US would be in a stronger situation with China. I don't expect this to happen with the US huge appetite for cheap goods.
China does not have a monopoly on "rare earth elements". They are simply (or were), the cheapest source for these raw materials. Demand will continue to increase and outstrip this artificially low supply, making it economically feasible to exploit other sources, which we should have been doing all along, considering the strategic importance of these raw materials. Then again, since many of our consumer electronics, which are produced in China, use these raw materials, China can continue to use them in their production or they can choke on them.
Hi, becareful about banning all imports from China, they practically make all the computer parts in the world.
This article was written in 2010, and to this day (2013) we are still swamped and glutted with China imports. All anyone need do is turn over a product from any store and then read its label, you shouldn't be surprised if 9 times out of 10 it reads: Made in China. Deeply troubling.