is this an attempt to suppress the innovation rate of other countries?
It’s likely them firing back due to US tightening chip exports.
This is really the best they could come up with?
China plans to ban exports of rare earth magnet tech
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Re: China plans to ban exports of rare earth magnet tech
#12Re: China plans to ban exports of rare earth magnet tech
#13is this an attempt to suppress the innovation rate of other countries?
It's about avoiding counter-party risk and strengthening domestic supply chains against uncertain economic, geopolitical and military future. Certainly there is the element of "don't strengthen your adversaries" too. Why would they want to make the West stronger (if they can avoid it) if the West is a potential military threat?
Re: China plans to ban exports of rare earth magnet tech
#14I read "Rare Earths" are nor really rare. But the article did say extracting these elements cheaply causes a lot of environmental damage, which as we know, China is perfectly fine with. I also read the US is close to opening a "mining" site for Rear Earths, but not sure where or for what elements.
They are rare in the sense that they tend to be extremely diffuse, rather than having nice, massive veins of concentrated ore or elemental metal like you might find for copper or bauxite.
Since they tend to be diffuse, mining them requires disrupting significant volumes of earth and rock, plus the chemicals needed to separate them out of the less interesting material that gets dug up.
The cheapest way to do that is to strip mine large tracts of land and not reclaim or treat any water used in the process, which will likely be full of heavy metals and other chemicals.
If we don't like how other countries do it, we have to be willing to do it ourselves, which means years delayed supply chains (basically every mine in the US is protested and delayed through the legal system) and higher prices for the refined materials (it costs more to do it right).
Re: China plans to ban exports of rare earth magnet tech
#15"China is estimated to hold an about 84% share of the global market in neodymium magnets and an over 90% interest in samarium cobalt magnets. Japan, meanwhile, has about 15% of the neodymium magnet market and a less-than-10% share of that for samarium cobalt. If China bans the export of such technologies, it would be difficult for the United States and Europe, which do not traditionally manufacture rare earth magnets…
The bigger story is the recent push to settle trade in Yuan instead of USD.
BRICS [1] , Saudi Arabia [2], many South American [3] and ASEAN countries [4], (and even France [5]!) have signed on to do Yuan-based settlement.
This is the strongest concerted effort to kill the petrodollar and Bretton Woods. It would have devasting impact to the US economy if this trend continues.
The US economy and our special ability to buy cheap goods have relied upon the world buying up US dollars. The sheer amount of investment in the US is a direct consequence of the dollar's elevated status.
This is pushback to US Swift-based sanctions and hegemony and an acceleration to multi-polar power. Several counties have wanted this for a long time, but the Ukraine war and tensions with China have accelerated this.
This is a big deal with titanic, earth shaking consequences for the US and the West. It could lead to incredible inflation and an economic depression if the world stops buying up dollars.
This is pretty horrifying to watch unfold so quickly.
It's hard not to see all of the chess pieces moving. There is a huge game being played right now -- in the open, for all to see -- that will determine the balance of power for the remainder of the century.
[1] https://www.bloomberg.com/news/articles/2023-03-28/o-neill-u...
[2] https://www.wsj.com/articles/saudi-arabia-considers-acceptin...
[3] https://www.scmp.com/economy/china-economy/article/3215857/c...
[4] https://www.manilatimes.net/2023/04/06/business/foreign-busi...
[5] https://www.rfi.fr/en/business/20230331-petrodollar-under-th...
Re: China plans to ban exports of rare earth magnet tech
#16I read "Rare Earths" are nor really rare. But the article did say extracting these elements cheaply causes a lot of environmental damage, which as we know, China is perfectly fine with. I also read the US is close to opening a "mining" site for Rear Earths, but not sure where or for what elements.
California had a very large RE mine until it suffered a toxic waste spill and closed in 2002. [1]
1. https://en.wikipedia.org/wiki/Mountain_Pass_mine#:~:text=The....
Re: China plans to ban exports of rare earth magnet tech
#17is this an attempt to suppress the innovation rate of other countries?
I think its more a tit-for-tat response to previous US trade restrictions.
Re: China plans to ban exports of rare earth magnet tech
#18Re: China plans to ban exports of rare earth magnet tech
#19I read "Rare Earths" are nor really rare. But the article did say extracting these elements cheaply causes a lot of environmental damage, which as we know, China is perfectly fine with. I also read the US is close to opening a "mining" site for Rear Earths, but not sure where or for what elements.
The US has always had rare earth mines, but competition from low cost producers in China makes them economically unviable (and the US is market based, among other things). There is plenty of supply in developed countries, but being undercut by other producers require government subsidies or a more closed market to be viable.
If China refuses to export this stuff themselves, it actually makes these mines more economically viable. However, if they export the end products, they could still have problems.
Re: China plans to ban exports of rare earth magnet tech
#20is this an attempt to suppress the innovation rate of other countries?
I think its more a tit-for-tat response to previous US trade restrictions.
I mean, the US move was tit-for-tat for a decade of militarizing the South China Sea, threatening war against Taiwan, undermining the US economy through stealing trade secrets and sponsoring national champions.