This doesn't dispute that China is merely exercising its rights on its own resources. So again, what's your point? Some sort of threat? Really, the West wouldn't be complaining right now and would be exercise its leverage if it has any to begin with. If China determines not to sell, then short of military pressure the West won't get its hands on those rare earth resources, and we know that isn't possible either. So this sounds like empty threat to me. And the West has ignored China's interests for the longest time anyway, so what's happening here is more like China returning the favour and the West doesn't like the taste of its own medicine.
I overlooked it on the first occassion, however I still think its worth a reply.
No I do not think it is a case Western propaganda giving a distorted account on how China became the main source of R.E.M.'s
For clarification , China was more than willing to sell its R.EM's at market prices it was actually giving its producers , tax rebates for exporting the stuff. If it was a victim of the Wests requirements, then it was pretty obvious that it was a willing one. In this case I think China is like the girl who engaged in consensual sex in the evening and then claimed rape when she woke up in the morning is a suitable analogy.
".......In the 1990s, the Government encouraged enterprises to export their products by refunding the value-added tax that producers paid on exported products................"
As I suggested earlier under Deng it had set out to become a major player in the production of REM, even if it meant undercutting the competition.
Actually rather than a losing situation for China, its become one of win win for China if this article is anything to go by
".......A decade earlier, in 1995, two Chinese government-backed companies — together with Sextant Group, a private-equity firm headed by Archibald Cox Jr., son of the former Watergate prosecutor — bought Indiana-based Magnequench, one of the last U.S. makers of neo-magnets.
Magnequench's unique manufacturing process was developed by General Motors — and the Chinese wanted it, according to Stanley Trout, a former Magnequench scientist.....................
America also lacks skilled rare-earth experts. In the 1980s, the U.S. magnet industry employed 6,000 workers, according to Richardson's association. Today's figure: 400.
An even greater gap exists at the scientific level's top echelon. The United States has about 60 scientists and engineers with specialized knowledge of magnet production, to China's 6,000, Green says.
"U.S. leadership in (rare-earth element) technology is eroding," according to a Carnegie Mellon University report. It found that the end of U.S.-based manufacturing "led to the removal of over 90 percent of domestic R&D activities on rare-earth permanent magnet materials."
Conclusion: The "knowledge for producing (neo-magnets) within the U.S. has been lost."
"The knowledge drain is a long-term strategic problem" for America, Molycorp's Sims acknowledges.
Molycorp has hired 20 scientists and is seeking more "as fast as we can," according to CEO Mark Smith. He says the company has contacted retired Japanese experts interested in helping the American firm.
Peter Dent, vice president of business development at Electron Energy Corp. in Landisville, Lancaster County, outlines the challenge: "Japan, China and Germany are extremely good. ... Molycorp is going to have to be competitive against people who are doing very well. It's a big hill to climb."
Thomas Sanderson, deputy director and senior fellow on transnational threats for the Center for Strategic and International Studies (CSIS), a Washington think tank, is equally pessimistic.
"In some ways, it's too late," he says, because China "bought up the market. It will be difficult for us to regain our position. Some skills and industries are perishable.................."
Read more: U.S. control of 'rare earth' minerals slipping - Pittsburgh Tribune-Review
So in essence it was a brilliant concept but perhaps not quite as well executed. Perhaps China got caught out with the increasing demands and ended up having to play hardball a lot earlier before all the pieces were in place.
For example China has been trying to become a major player in Australian R.E.companies has met with failure whenAustralia's Foreign Investment Review Board rejected a 51% bid by CNMC that would have seen the world's richest deposit "Mt Weld" owned by Lynas Corp having CNMC as its majority shareholder. I think that might also leave her on the outside when it comes to the major refinery in Malaysia.
and along with a few other attempts to increase share holdings in mining companies (Rio Tinto) going astray, is what I mean't by "her actions coming back to bite her in the buttocks."
When China joined the WTO she agreed to abide by its rulings. However I think it would probably be better all round for the WTO to come up with some form of compromise.
