China increases rare earths export quota

Business Aug. 23, 2012 - 04:15AM JST ( 3 )

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saidaniAug. 23, 2012 - 05:26AM JST

Ah....the free market at work. China was the leading producer of the much needed rare earths because other nations decided not to destroy their environment to produce the items. China did what anyone would do when they held a monopoly, restrict the items to raise the price. Everyone else was free to fill the supply void. Instead, they whined about China's manipulative practices. Now that the demand has been reduced because of the slowing economy in addition to manufacturers finding alternative ways to make their products, the Chinese are responding.

Sadly, if this incident caused this much hand wringing and political posturing, one can only imagine what a similar reduction in oil will bring. Oh, right...more war in the ME.
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sasakamaAug. 23, 2012 - 08:31AM JST

As China is losing the power in terms of a cost of making something, they appear to shift the country that is focusing on natural resources like rare metal. Unlike Japan, they might want to be in good position in high tech industries even after most of production shit to another countries where a labor cost should be much more cheaper.
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basroilAug. 23, 2012 - 05:24PM JST

saidaniAug. 23, 2012 - 05:26AM JST

Ah....the free market at work.

Quotas are the definition of government controlled markets.

China won't change their stance even if WTO rules against them. They will simply just cut supplies to zero and drop out of WTO.