Thursday, October 21, 2010
Taking advantage of its virtual monopoly of rare earth minerals, China recently has reduced exports of the vital materials to the West. Chinese experts say the moves may be an indication of Beijing flexing its economic muscle and demonstrating its unhappiness over trade matters.
The reduction of rare mineral exports began last month with Japan, which has had its shipments from China blocked. More recently, exports to the U.S. and Europe have been curtailed.
China sits atop 95% of the world’s rare earth elements, which are used for everything from cell phones to missiles.
Chinese officials told the media that the exports were reduced to conserve the nation’s supply of the minerals, and that it was not embargoing for political reasons. Some reports have indicated China took action on American imports of rare minerals in response to the allegation by Ron Kirk, the U.S. Special Trade Representative, that the Asian country has been illegally subsidizing its green technology sector.
The Ministry of Commerce claims China’s reserves of medium and heavy rare earth minerals might be exhausted within 15 to 20 years unless production is lowered. China plans more cutbacks on exports next year, by about 30%.
Among the rare earth minerals upon which the world economy is dependent are:
- Bastnasite, used in polish products for mirrors, telescopes and hard drives, among others
- Cerium, which has various uses including in the manufacture of pollution-control systems in cars and oil refineries
- Lanthanum, used in fuel cells and batteries, could be an important element if electric cars become popular
- Neodymium, used in magnets that are critical in the making of cell phones, computers, sound systems, air bags and anti-lock brakes
- Gadolinium, used in MRI systems and in the detection of nuclear power plant radiation leaks
- Thulium, one of the rarest of rare earth elements, can be used to reduce X-ray exposure.
-Noel Brinkerhoff, David Wallechinsky
China Said to Widen Its Embargo of Minerals (by Keith Bradsher, New York Times)
China to Reduce Rare Earth Export Quotas (by Zhang Qi and Ding Qingfen, China Daily)
China Denies Any Rare Earth Mineral Export Embargo (by Peter Ford, Christian Science Monitor)
The Battle with China for Rare Earth Elements Continues (by Noel Brinkerhoff, AllGov)
U.S. Mining Company Hopes to Break Chinese Monopoly of Rare Minerals (by David Wallechinsky and Noel Brinkerhoff, AllGov)
China Controls Rare, but Important Minerals (by Noel Brinkerhoff, AllGov)
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