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This is a great example of why we need to fix these issues with China. Rare earth elements are not that rare, China has been dumping them on the market going back more than a decade. They now monopolizes the supply because mines here in the US and elsewhere went out of business. This is common thing they have done with many products.
It's actually the opposite. China wants to reduce its production, but WTO ordered China to lift the quota.
Americans need to understand the world instead of being brainwashed by China-bashing media.
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The US brought a case to WTO's Dispute Settlement Body against the Chinese restrictions. The European Union and Japan also joined the case on the US side. The US argued that the Chinese restrictions were in breach of the accession treaty that China had signed when it joined the WTO in 2001. The treaty disallowed export duties and quotas, except for goods specifically listed. Rare earths were not among the goods specifically listed.[3]
China argued that its restrictions were legal because WTO regulations allow countries to impose export duties and quotas for reasons of conservation and to protect plant, animal, and human safety.[3][4]
The Dispute Settlement Panel ruled against China. Though the Panel acknowledged that countries are allowed to restrict exports for reasons brought up by China, the Panel was not persuaded that the Chinese restrictions served those reasons. It is true that countries have the right to restrict mining for reasons of conservation and safety, but once the material is out of the ground, WTO member governments could not discriminate between domestic and foreign firms in giving access to the mined resource. China's restrictions gave its domestic firms preferential access to the rare earths, which was against the principle of “non-discrimination” that WTO members are obligated to follow.
Lower prices has always been an important tool of developing countries. Usually that advantage goes away all by itself once the country has caught up. It was the same with Japan. Remember the Japan bashing decades ago?
It's actually the opposite. China wants to reduce its production, but WTO ordered China to lift the quota.
Americans need to understand the world instead of being brainwashed by China-bashing media.
========================
The US brought a case to WTO's Dispute Settlement Body against the Chinese restrictions. The European Union and Japan also joined the case on the US side. The US argued that the Chinese restrictions were in breach of the accession treaty that China had signed when it joined the WTO in 2001. The treaty disallowed export duties and quotas, except for goods specifically listed. Rare earths were not among the goods specifically listed.[3]
China argued that its restrictions were legal because WTO regulations allow countries to impose export duties and quotas for reasons of conservation and to protect plant, animal, and human safety.[3][4]
The Dispute Settlement Panel ruled against China. Though the Panel acknowledged that countries are allowed to restrict exports for reasons brought up by China, the Panel was not persuaded that the Chinese restrictions served those reasons. It is true that countries have the right to restrict mining for reasons of conservation and safety, but once the material is out of the ground, WTO member governments could not discriminate between domestic and foreign firms in giving access to the mined resource. China's restrictions gave its domestic firms preferential access to the rare earths, which was against the principle of “non-discrimination” that WTO members are obligated to follow.
To reiterate they monopolized this market by dumping product. This is one of the reasons for the trade war to begin with. You are illustrating why we should be in trade war.
Obviously you know nothing about this issue, but pretend to be an expert even after your ridiculous claims got debunked.
China has 81% production of the world with 37% reservation. Many countries such as Japan have no production and totally rely on China.
China has always tried to reduce its exportation, because it is not very profitable at all and does harm to the environment, but other countries do not allow it.
From the map in the article showing reserves of rare earth minerals around the world:
China has 44 million tonnes of reserves
The U.S. has 1.4 million tonnes of reserves
...and there is key things the US controls because of abundance. Helium for example. Two can play this game.
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