How China Took Over the World’s Rare Earths Industry
In recent years, China has solidified its dominance in the global rare earths industry, controlling a vast majority of the world’s supply. Rare earths are a group of 17 elements that are crucial in the production of high-tech products such as smartphones, electric vehicles, and wind turbines. With the increasing demand for these technologies, China’s control over rare earths has become a major concern for many countries around the world.
China’s dominance in the rare earths industry can be traced back to the 1980s when the country began investing heavily in rare earth mining and processing. By the early 2000s, China had established itself as the world’s leading producer of rare earths, controlling over 90% of the global supply. This was largely due to the country’s vast reserves of rare earth minerals and its ability to produce them at a lower cost than other countries.
In addition to its abundant resources, China also benefited from a lack of environmental regulations in the rare earths industry. This allowed Chinese companies to mine and process rare earths at a faster pace, further solidifying the country’s dominance in the market. As a result, many rare earth mining operations in other countries were forced to shut down due to the inability to compete with China’s low prices.
China’s control over the rare earths industry has raised concerns about the country’s ability to leverage its position for political and economic gain. In the past, China has used its dominance in rare earths as a bargaining chip in trade disputes with other countries, threatening to restrict exports in order to gain concessions. This has led many countries to seek alternative sources of rare earths in order to reduce their dependence on China.
Despite efforts to diversify the supply chain, China’s dominance in the rare earths industry remains unchallenged. The country continues to invest in research and development to further improve its production capabilities and maintain its competitive edge in the market. As the demand for high-tech products continues to grow, China’s control over rare earths is likely to remain a major concern for countries around the world.
In conclusion, China’s takeover of the world’s rare earths industry has been a strategic move that has allowed the country to solidify its position as a global leader in high-tech manufacturing. As the demand for rare earths continues to rise, it is important for countries to consider alternative sources in order to reduce their dependence on China and ensure a more stable supply chain for these crucial elements.