Tracking: Rare Earth, Trade & Tensions

Related entries: Business Issues, General, News, Risk & Law, Trading

This story (see original post below) continues to twist and turn (like a twisty, turny thing*), so we have continued to update it with the latest news…(Updated 17/02/11)

• RT @newschina: China rare earth companies to form association http://stk.ly/gVmgoi more profits for CN companies higher rare earth prices…

• Stockpiles RT @InfoseekChina: China Moves to Strengthen Grip Over Supply of Rare-Earth Metals http://tinyurl.com/4qkruzb

• Regions: @caixinmediafeed Government draws up national planning regions for rare earths, strengthening government regulation http://bit.ly/hGOjS9

• Rare earth & Guoxin RT @21cbhchinanews: China Plans to Consolidate State-Owned Rare Earth Assets http://dlvr.it/CgDXg

• Rare earth RT @iichina: China to Cast a Broader Regulatory Net over Rare Earth Industry: China’s first rare earth… http://goo.gl/fb/17CcL

• Rare earth reasoning RT @live_china: …China defends rare earth quotas as in line with WTO – Reuters http://ff.im/-w33CG

• Rare earth update RT @gadyepstein: RT @NiuB: China cuts rare earth export quotas 11 percent in early 2011 http://reut.rs/dSkp5G

• Rare earth update RT @gadyepstein: RT @NiuB: China cuts rare earth export quotas 11 percent in early 2011 http://reut.rs/dSkp5G

• RT @hhwang: China rare earths exports double in November: BEIJING (Reuters)… http://bit.ly/gauXYJ

• RT @GE_Anderson: China to Raise Export Taxes of Some Rare Earths to 25% http://is.gd/iRHwG Does the WTO still exist?

• Export Tariffs: RT @vshih2: RT @Reuters_Biz China to raise rare earth export tariffs in 2011 http://dlvr.it/BLLgt /finally the bottomlines

• Stricter environmental standards for rare earth mining: Chinese authorities are mulling tightening pollution sta… http://bit.ly/bdc37B

• “Minor” vs “rare” RT @hubeiren: China’s New Metal Export Quotas http://sns.ly/4Tm55

• RT @Chinalyst: Rare Earths And Polysilicon. Does China Control Our Green Future? China Law Blog http://bit.ly/bSMLNm

• Still (de)pressing RT @InfoseekChina: Japan Presses China on Rare Earth Exports http://bit.ly/bTJhfSLooks likely!

• RT @21cbhchinanews: #China May Launch Rare Earth Strategic Reserve Mechanism Next Year – Source http://dlvr.it/7g8Nd

• RT @gadyepstein: Names You Need To Know In 2011: Baotou, Rare Earths Capital Of The World http://bit.ly/djQKfs Forbes post by me

(Updated 25/10/10)

• RT @chinahearsay: The Truth Behind China’s Rare Earths Embargo Forbes http://is.gd/gaHqU

• Oh no, it’s “strategic”! RT @gadyepstein: China “unambiguously intends to cut its exports of rare-earth…by @eosnos http://nyr.kr/clmsvY

• RT @InfoseekChina: Rare Earths Deposits in China Forecast to Last 15-20 Years, Ministry Says http://tinyurl.com/2fv4fh5
(Updated 12/10/10):

• @danwei What are rare earths and why does China control their supply?: Bloomberg has an extensive report on rare earth ele… http://bit.ly/a2njKA

• (Not) rare earth RT @CDT: Rare Earths are Paper Tigers: At Foreign Policy, rare-earth trader Tim Worstall questions… http://bit.ly/aoTl94

• Wondering how the Japanese translation might read… RT @darnoc: Wen Says Rare Earths Not a Bargaining Tool http://bit.ly/cmWwGv

• Pushing the party (environmental) line RT @chinahearsay: China defends its rare earths regulation http://is.gd/fuZ9g

• Beyond rare earth RT @CDT: China, Japan’s Leaders Meet, Signal Thaw: After weeks of acrimony… http://bit.ly/bTrMob

• Ban(ish) RT @MalcolmMoore: RT @NiuB: China lifts rare earth export ban to Japan: http://bit.ly/c2ohvW

• Urban mining RT @InfoseekChina: Japan Recycles Rare Earth Minerals From Used Electronics – http://nyti.ms/9Yg2r0

• RT @riceagain: AFP: Australia set for ‘rare earths’ boom http://ow.ly/2NyuJ

• RT @RareMetalBlog: Too little too late? China’s rare earth threat prompts US action http://bit.ly/bslNRC

(Original post)

The story of last week was, without a doubt, the territorial-to-rare earth spat between China and Japan. Much has been written about it (rare earths make technology work), and we have picked up some links that follow the progress (or otherwise) of the incident, and which provide some analysis of the implications.
In short China has come across as aggressive at a time when it has been promoting “soft power” and international influence, and worryingly willing to use (whether via formal policy or informal practice) its control of a valuable resource as a tool for leverage (something it must worry about others doing in other areas – hence a lot of resource-driven overseas direct investment).

So, more-or-less in reverse order (of news we captured on Twitter), here goes:

• RT @RareMetalBlog: Too little too late? China’s rare earth threat prompts US action http://bit.ly/bslNRC

• @danwei What are rare earths and why does China control their supply?: Bloomberg has an extensive report on rare earth… http://bit.ly/a2njKA

• Ban(ish) RT @MalcolmMoore: RT @NiuB: China lifts rare earth export ban to Japan: http://bit.ly/c2ohvW

• Pushing the party (environmental) line RT @chinahearsay: China defends its rare earths regulation http://is.gd/fuZ9g

• RT @chinaworldforum: Of Rare Metals and Light Currencies…trade embargo is the story of the week. ChineseTactics.com: http://ht.ly/2JxI4

• Rare earth & practice vs policy RT @NiuB: China Is Blocking Minerals, Executives Say: http://nyti.ms/aofdq5

• RT @CDTimes: Japan to release Chinese boat captain: http://twurl.nl/t4g34f

• @TomLasseter How a minor China-Japan fishing dispute blew into a diplomatic hurricane: http://bit.ly/9yWvRI (CSM) RT @NiuB

But the rare earth story started well before last week…

Back in 2006 we posted about Foreign Direct Investment, and an AFP report: “China has released new rules to prohibit or limit foreign investment in key industries as it seeks to cool its overheated economy and clean up its damaged environment…China’s key economic developmental agency identified sectors from real estate and financials to oil and rare metals as restricted or off limits to foreign capital”.

We noted then that “a lot of new corporate policy and risk analysis reports can be expected!”.
More recently, in June, we picked up more rare earth news in our weekly review : “…state influence has been visible in other recent news, including…special rights to rare earth mining for state-owned enterprises. Understand, and align with policy – ignore it at your peril!”

In August, in another update, we went on to note that: “China wants access to some rare raw materials. Yes, rare earths are back in the news, along with Chinalco. People’s Daily reported that the company: “is eyeing rare earth mines in Guangxi Zhuang autonomous region to bolster reserves”, and that “The government has indicated that it wants big companies to spearhead the consolidation of the nation’s rare earth sector”. This is a worrying policy for international firms that rely on these materials for high-tech production as “China supplies more than 95 percent of the global output of rare earth oxides and sits on half of the reserves in the world”. This is a policy – and a risk issue – to watch.”

And we will continue to watch and write (and hopefully you will continue to read), because the story is still being written…

* Please forgive the “Blackadder” reference….

5 Responses to “Tracking: Rare Earth, Trade & Tensions”

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