cross-posted from: https://hexbear.net/post/2904990
The Chinese government has introduced a slew of new measures designed to tighten its grip on lucrative natural resources used in everything from electric cars to wind turbines. In a list released by the country’s State Council on Saturday, Beijing declared that rare earth metals are the property of the state and warned “no organization or person may encroach on or destroy rare-earth resources.” From Oct. 1, when the rules come into force, the government will operate a rare earth traceability database to ensure it can control the extraction, use and export of the metals. China currently produces around 60 percent of the world’s rare earth metals, and is the origin of around 90 percent of refined rare earths on the market. Advertisement
Beijing has already prohibited exports of rare earth refining and magnet manufacturing technologies. In January, it banned the export of gallium and germanium, both highly sought after by the computer-chip industry. Fears that China is looking to exert control over the industry, and could disrupt critical technology, automotive and renewable energy supply chains, have sparked a race to shore up supplies from alternative suppliers. Both the U.S. and the EU have launched efforts to procure rare earths at home and abroad, including in Vietnam, Brazil and Australia. A year ago, European Commission President Ursula von der Leyen announced construction of the first large-scale rare earth refinery outside of Asia, located in Estonia. She said the move would “bolster European resilience and security of supply.”
A 2022 analysis from the European Parliament warned that over-reliance on monopolistic suppliers was a major risk for Europe. “The EU imports 93 percent of its magnesium from China, 98 percent of its borate from Turkey, and 85 percent of its niobium from Brazil. Russia produces 40 percent of the world’s palladium,” it said. “The latter is a reminder of the strategic implications of the Russian invasion of Ukraine, and the need for the EU to prepare for an increasingly uncertain world.”
The EU has launched a probe into anti-competitive trading allegations against the Chinese electric vehicle market, which benefits from heavy government subsidies and preferential access to essential rare earth metals. Earlier this month, the two sides agreed they would host consultations in order to try and resolve the standoff.
That last paragraph really is so damning. It is admitting the superiority of China’s central planning and how it is being used to actually improve society. ”But at what cost?”
Well, apparently the cost is that shares of China’s largest rare earth mineral mining firm have gone up 5% since the announcement. China proving socialists right every single day and absolutely crushing the capitalist development speedrun challenge. It’s genuinely hilarious that the development plan of China runs basically like what I’ll describe below, and capitalist nations are just completely incapable of stopping it from happening because the power of capital is greater than the power of their states.
“hmmm yes, today I will invest in the Chinese rare earth mineral market. Since China controls 90% of global production and all of the infrastructure is in place, all I have to do is bring my money, tech, and expertise with me and I’ll carve myself some serious profit! Easy money!”
“Ahh yes thank you for the help developing our mining industry/technology Mr. Foreign Capital. We appreciate your business and you had a great run, but unfortunately for you we have nationalized your mineral resources. The extractive capitalism will now stop. Feel free to reinvest elsewhere or compete with us on the global market tho :)”
”China is nationalizing its rare earth minerals, but at what cost? We need to ban China from–“
Rinse and repeat
You know what?
GOOD!
Every nation should be doing that.
Seriously. Those materials are essential and necessary for growth. Allowing some capitalist douchebag to hoard it all and make profits from it is a national security threat.
Let the country build and the country will grow.
Not just that, but get fair value for the material.
Not how companies got basically carte blanche to extract however much they can get and then claim no profit when taxes come around.
And then on top we provide these with parasites with transfers from federal budget to develop their mines and fields… and they get to price gouge on the back end.
NO money for anything else tho
China announced they’re cutting production to prop up rare earth mineral prices, a lot of people here seem to think something very different is happening…
Care to elaborate? Cutting production of what?
I see now, I must have missed the word ‘prices’ on my first read. Fine by me though. As if the west hasn’t tried to economically destroy China for decades. Good for them. Get the bag, kings.
Cutting the mining and refining of rare earth oxides, aka the production of rare earth metals. That’s what this conversation is about…
It’s in every article about this. The price of rare earth ore in China has dropped precipitously, almost 80% since 2022. China is going to punish unauthorized mining and smelting activity and limit production among authorized producers.
Here’s one article, use your favorite search engine to find a bunch more
I understand your point. They’re manipulating the market.
But still, every country should nationalize their natural resources.
What they’re doing is basically implementing a cartel model, which is not good for anyone except the people who make money from the industry
Dude, the frequency with which people are accepting this screenshot of a headline as a statement of fact is frightening. Please read about what they actually announced rather than falling for what is essentially propaganda