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China Rare Earth Limits Said to Be Targeted by U.S.

donsutherland1

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From Bloomberg.com:

China’s restrictions on the export of rare earths used in the manufacture of cell phones and radar are being targeted by the U.S. Trade Representative for a potential trade case, according to industry representatives.

The U.S. has asked business groups and unions to provide evidence that China is hoarding these elements for a case that may be filed at the World Trade Organization, according to the people, who asked not to be identified because the talks were confidential.

China Rare Earth Limits Said to Be Targeted by U.S. (Update2) - Bloomberg.com

This issue is yet another early skirmish in what could become an increasingly high stakes battle in the future. With certain natural resources ranging from oil to rare earth minerals under increasing demand relative to supply down the road, resource nationalism could increase. Under such a strategy, states possessing such resources would put their own political/national interests ahead of market ones. There is no assurance that world trade rules would be able to avoid such a trend. Hence, it is a risk that creates real pressures for innovation, ranging from development of alternative energy to new technologies that would use rare earth alternatives or, if necessary, breakthroughs that allow for the development of molecular/atomic engineering to manufacture such materials. The country or countries that achieve breakthroughs in such areas could gain and then sustain long-lasting competitive advantages. In terms of geopolitical power, they could alter the existing balance of power.
 
From Bloomberg.com:



China Rare Earth Limits Said to Be Targeted by U.S. (Update2) - Bloomberg.com

This issue is yet another early skirmish in what could become an increasingly high stakes battle in the future. With certain natural resources ranging from oil to rare earth minerals under increasing demand relative to supply down the road, resource nationalism could increase. Under such a strategy, states possessing such resources would put their own political/national interests ahead of market ones. There is no assurance that world trade rules would be able to avoid such a trend. Hence, it is a risk that creates real pressures for innovation, ranging from development of alternative energy to new technologies that would use rare earth alternatives or, if necessary, breakthroughs that allow for the development of molecular/atomic engineering to manufacture such materials. The country or countries that achieve breakthroughs in such areas could gain and then sustain long-lasting competitive advantages. In terms of geopolitical power, they could alter the existing balance of power.

The US I dont think will get very far with this complaint at the WTO as China will have strong case against the US for a very similar issue

The US blocked the sale of Unocal to CNOOC to China over national security issues, and does not allow the export of certain high technology items to China for similar issues

China can for very logical reasons claim that the rare earths important for national security issues (Unocal's production of rare earths being one of the reason's it sale was blocked) as the rare earths do have military uses
 
Why is the world entitled to China's resources?
 
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