Row Over Rare Earth Metals

{
  "authors": [
    "Yukon Huang"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [
    "North America",
    "United States",
    "East Asia",
    "China"
  ],
  "topics": [
    "Political Reform",
    "Economy",
    "Trade",
    "Foreign Policy"
  ]
}

In The Media

Row Over Rare Earth Metals

Rare earth metals are vital ingredients in a wide range of high tech product lines important to global trade and China's perceived monopoly on these metals is a big concern for the West.

By Yukon Huang

Published on Mar 13, 2012

Source: BBC News

Rare earth metals are vital ingredients in a wide range of high tech product lines important to global trade. Speaking on BBC News, Carnegie's Yukon Huang explained that China's monopoly on these metals is a big concern for the West. At least in theory, the United States, the EU, and Japan have legitimate grounds to file a case against China at the WTO because China has levied export quotas in such a way that prices for Chinese producers are lower than prices for foreign producers, Huang said.

Huang explained that China only has one third of global reserves of these minerals; the bulk lies in the United States, Canada, and Australia. Several years ago, China warned that growth in the extraction of rare earth metals would not be sufficient to meet global demand so quotas would have to be levied. Over the last two to three years, Huang concluded, western producers have faced a dwindling supply that is not sufficient to meet their needs.

About the Author

Yukon Huang

Senior Fellow, Asia Program

Huang is a senior fellow in the Carnegie Asia Program where his research focuses on China’s economy and its regional and global impact.

Recent Work

Commentary
Three Takeaways From the Biden-Xi Meeting
- Yukon Huang, Isaac B. Kardon, Matt Sheehan
Commentary
Europe Narrowly Navigates De-risking Between Washington and Beijing
- Yukon Huang, Genevieve Slosberg

Political Reform Economy Trade Foreign Policy North America United States East Asia China

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Carnegie China

Commentary
China’s Energy Security Doesn’t Run Through Hormuz but Through the Electrification of Everything
Across Asia, China is better positioned to withstand energy shocks from the fallout of the Iran war. Its abundant coal capacity can ensure stability in the near term. Yet at the same time, the country’s energy transition away from coal will make it even less vulnerable during the next shock.

Damien Ma
Commentary
Emissary
The Xi Doctrine Zeros in on “High-Quality Development” for China’s Economic Future
In the latest Five-Year Plan, the Chinese president cements the shift to an innovation-driven economy over a consumption-driven one.
Damien Ma
Commentary
Malaysia’s Year as ASEAN Chair: Managing Disorder
Malaysia’s chairmanship sought to fend off short-term challenges while laying the groundwork for minimizing ASEAN’s longer-term exposure to external stresses.
Elina Noor
Commentary
When It Comes to Superpower Geopolitics, Malaysia Is Staunchly Nonpartisan
For Malaysia, the conjunction that works is “and” not “or” when it comes to the United States and China.
Elina Noor
Commentary
ASEAN-China Digital Cooperation: Deeper but Clear-Eyed Engagement
ASEAN needs to determine how to balance perpetuating the benefits of technology cooperation with China while mitigating the risks of getting caught in the crosshairs of U.S.-China gamesmanship.
Elina Noor

More Work from Carnegie China

Commentary

China’s Energy Security Doesn’t Run Through Hormuz but Through the Electrification of Everything

Across Asia, China is better positioned to withstand energy shocks from the fallout of the Iran war. Its abundant coal capacity can ensure stability in the near term. Yet at the same time, the country’s energy transition away from coal will make it even less vulnerable during the next shock.

Damien Ma

Xi walking into a room with people standing and applauding around him

Commentary

Emissary

The Xi Doctrine Zeros in on “High-Quality Development” for China’s Economic Future

In the latest Five-Year Plan, the Chinese president cements the shift to an innovation-driven economy over a consumption-driven one.

Damien Ma

Commentary

Malaysia’s Year as ASEAN Chair: Managing Disorder

Malaysia’s chairmanship sought to fend off short-term challenges while laying the groundwork for minimizing ASEAN’s longer-term exposure to external stresses.

Elina Noor

Commentary

When It Comes to Superpower Geopolitics, Malaysia Is Staunchly Nonpartisan

For Malaysia, the conjunction that works is “and” not “or” when it comes to the United States and China.

Elina Noor

Commentary

ASEAN-China Digital Cooperation: Deeper but Clear-Eyed Engagement

ASEAN needs to determine how to balance perpetuating the benefits of technology cooperation with China while mitigating the risks of getting caught in the crosshairs of U.S.-China gamesmanship.

Elina Noor