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US, EU, Japan Complain To WTO Over China's Rare Earth Ban
eldavojohn writes "China's rare earth monopoly has resulted in a shortage as China blocks their export and the rest of the world resumes their operations. Now, in a first-ever joint filing from three members of the World Trade Organization, Japan, the EU and the U.S. are not sitting idly by as China repeatedly ignores the WTO's orders to export rare earth metals and raw materials at a fair price to other countries. China claims the embargoes are in place to protect its environment, while Obama denounces China as being unfair and not playing by the rules of the WTO. In 2009, the WTO released a report (PDF) that explained how actions like China's hurt trade partners."
Even though it's probably not the real reason (they just want to keep the materials for themselves, obviously, which is the smart thing to do), but in politics it's often advantageous to use your opponent's rhetoric--they risk making themselves look bad if they disagree with something they themselves said earlier.
Kony 2012.
Then start your business extracting rare earth, you will be rich !!!
then you gotta surrender your sovereignty.. I think China signed... So there
No, it is not a "bogus article", and the WTO is not "ordering any country to sell anything at what it determines" is a fair price. WTO is a free trade agreement. China signed it.
As such, WTO has rules which parties agree to abide by in return for protection of their own exports. WTO does not charge China with having a monopoly, but with using government rulings (environmental laws) to manipulate markets. There are rules in WTO which allow a country to limit exports of raw materials, but doing so in order to manipulate prices is against WTO rules. China doesn't have to BE in the WTO (Iran is not), and if they don't WANT to abide by the WTO ruling they can leave WTO. Or, they can live with / suffer the sanctions, as others have. But if you are in WTO and use it, you have to play by the rules.
I'm not anti-China, and the USA deserves WTO sanctions for its agricultural subsidies. But whoever "modded up" this post doesn't understand WTO agreements. If you agree to follow WTO rules, you get unique market access to sell your products, but you also agree to sanctions if you use government to replace tariffs you've agreed not to use with "bogus" traffic laws, pollution laws, registration laws, or other "non-tariff barriers", or cut off the Japanese because you want to take over their electronics markets.
Gently reply
For 200+ years China was bullied by western powers
This is true. And then China proved itself to be the equal bully of Victorian era European powers.
/severe/ environmental issues.
You are right about the declining influence of the USA and the EU. I suspect, however, that China will not rise above, but will trace a similar arc as the soviet union did. In many ways, the Chinese miracle reflects the decade-long double-digit growth of the soviet union. And likewise, both countries have serious internal problems, including
I do believe that the chinese leadership will not sit idly by on these environmental issues, and their environmental policy looks bizarre to outsiders. I suspect they are drawing down on the possibility of future technical solutions which they are now investing in. But the future of industrial china has not yet been written.
btw, the USA, France, Britain, Germany, Japan, Russia and China are probably the only countries that can sustain a significant war. There may be a dearth of political will within the USA, France, Britain, German and Japan -- but if the will is ever galvonised, make no mistake, they could prosecute a real war anywhere on the planet.
Like all pain, suffering is a signal that something isn't right
and the cost of dog meat too I assume. Australia for example is mining like crazy just to keep China going. Presumably chinese companies are mining China like crazy too. So two huge land masses funneling production to mainly one. Chinese companies are also buying up canadian resource companies like crazy too. All the resources funnel into the country building stuff which for the most part is China.
The WTO can be upset about it but how about making the US export strategic assets they don't want to give away? Say Iran wants to buy a few nukes. NK wants some fighter planes etc. Every country decides what is in their best interest and I don't think WTO can do anything to make China share things they want to keep to themselves. Worst case scenario they would just create unofficial mines like Iran's nuke program and deny it to death and claim all their mines have been closed.
It all boils down to election posturing
Obama accuses China of not selling the rare earth "at fair price" while in California there is a large rare earth mine still remain closed
Muchas Gracias, Señor Edward Snowden !