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Chinese Rare Earths Producer Suspends Output
concealment writes "State-owned Baotou Steel Rare Earth (Group) Hi-tech Co. said in a statement released through the Shanghai Stock Exchange that it suspended production Tuesday to promote 'healthy development' of rare earths prices. It gave no indication when production would resume and phone calls to the company on Thursday were not answered. Beijing is tightening control over rare earths mining and exports to capture more of the profits that flow to Western makers of lightweight batteries and other products made of rare earths. China has about 30 percent of rare earths deposits but accounts for more than 90 percent of production. Beijing alarmed global manufacturers by imposing export quotas in 2009. It also is trying to force Chinese rare earths miners and processors to consolidate into a handful of government-controlled groups."
Start putting tariffs on anything made with Chinese rare earths. Since China is a net exporter, they have the most to lose playing these games.
Try starting a Chinese company that competes with one of the party backed ones and you'll see how capitalist they are not.
"Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
America exports the worlds supply of helium, hasnt produced a millilitre more for over 2 decades, and keeps the price artificially low.
OPEC sets quotas and prices for global oil supplies, and can suspend or restrict production whenever they feel the need.
American agricultural conglomerates like ADM and General Mills collude to set the price at which they will accept corn from farmers. too much corn does not drive the price of it down, instead its maintained by dumping cheap corn as an export, or siloing it for next year.
how has china in any way changed how capitalism has worked for the past 270 years? The only thing thats generated outrage is chinas willingness to take an aggressively competitive position in the global economy, instead of a subservient one. If you dont like it, consider pushing for more organized labor.
Good people go to bed earlier.
It depends on what you consider China "has", if it's just the minerals in the sovereign territory of China then 30% is probably a bit inflated, if you consider it explored proven reserves owned/controlled by China or Chinese companies it's probably understated.
There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
The problem is China can turn on production whenever they want and undercut any competition, driving those other producers out of business again and again so that no one wants to invest in such a risky industry.
I'm not a big fan of excessive tariffs, but the only way to prevent China from manipulating the market like that is for other governments to step in with their own manipulation, putting enough tariffs on Chinese exports that domestic mining of rare earths can survive (and also showing China if they pull this shit, there will be consequences).
The problem is businesses and consumers are so into short term savings they are more than happy to screw over their long term viability - when that happens it may be up to regulatory bodies/governments to look at the long term.