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China Just Banned Export Of Some Rare Earth Metals To The Us

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I'm not sure how accurate this is but I am seriously concerned. If I had to speculate I would say the Chinese are making their move now because they think they can cripple our economies with this. I guess the idea is to keep the status quo and watch our jobs move eastward until there are none left.

http://www.nytimes.com/2010/10/20/business/global/20rare.html?_r=1&hp

China Is Said to Halt Exports to U.S. of Some Key Minerals

HONG KONG — China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted shipments of some of those same materials to the United States and Europe, three industry officials said on Tuesday. The Chinese action, involving rare earth minerals that are crucial to manufacturing many advanced products, seems certain to further ratchet up already rising trade and currency tensions with the West. Until recently, China typically sought quick and quiet accommodations on trade issues. But the interruption in rare earth supplies is the latest sign from Beijing that Chinese officials are willing to use their growing economic muscle.

“The embargo is expanding” beyond Japan, said one of the three rare earth industry officials, all of whom insisted on anonymity for fear of business retaliation by Chinese authorities. They said Chinese customs officials imposed the broader shipment restrictions Monday morning, hours after a top Chinese official had summoned international news media Sunday night to denounceUnited States trade actions.

China mines 95 percent of the world’s rare earth elements, which have broad commercial and military applications, and are vital to the manufacture of diverse products including large wind turbines and guided missiles. Any curtailment of Chinese supplies of rare earths is likely to be greeted with alarm in Western capitals, particularly because Western companies are believed to keep much smaller stockpiles of rare earths than Japanese companies do.

China’s commerce ministry has repeatedly denied that it has imposed an embargo on shipments to Japan, even though Japanese ministers and industry executives say the shipments to their country have been systematically blocked by Chinese customs officials since Sept. 21.

Officials at the media relations office of China’s commerce ministry did not respond all day Tuesday to e-mail or to telephone calls, seeking confirmation of the expanded embargo.

A few rare earth shipments to the West had been delayed by customs officials in recent weeks, industry officials said, but the new, broader restrictions on exports appear to have been imposed Monday morning. They said there had been no signal from Beijing of how long rare earth shipments intended for the West would be held at the docks by Chinese customs officials. Nor is it clear if occasional shipments are still being allowed out of the country, or if all shipments have now been suspended.

Word of the blocked shipments emerged from industry executives on Tuesday after, earlier in the day, an official China newspaper reported that Beijing planned further reductions next year to its annual export quota for rare earths.

American trade officials announced last Friday that they would investigate whether China was violating international trade rules by subsidizing its clean energy industries. The inquiry includes whether China’s steady reductions in rare earth export quotas since 2005, along with steep export taxes on rare earths, are illegal efforts to force multinational companies to produce more of their high-technology goods in China.

That American announcement provoked an uncommonly fierce reaction from China. On Sunday evening, in an extremely rare move for a senior Chinese official, the country’s top energy policy maker, Zhang Guobao, called in reporters from international media organizations and lashed out against the American move.

Hours later, according to industry officials, Chinese customs officials began singling out and delaying rare earth shipments to the West.

Despite their name, most rare earths are not particularly rare. But new mines elsewhere will probably take three to five years to reach full production, according to industry executives.

Congress is considering legislation to provide loan guarantees for the re-establishment of rare earth mining and manufacturing in the United States. Most of the industry has moved to China over the last two decades because of lower costs and weak environmental enforcement there.

China, which in July said it was cutting this year’s export quota of rare earths by 72 percent, is preparing further reductions in its 2011 quota, the official newspaper China Daily said Tuesday. The Chinese government plans a further reduction, of up to 30 percent, next year, in an attempt to conserve dwindling reserves of the materials, according to the report.

Rare earth industry officials had been expecting a further reduction but were uncertain of the amount.

The Office of the United States Trade Representative, which is part of the White House, had a cautious reaction Tuesday to the China Daily report.

“Pursuant to our recent announcement, we are investigating whether China’s actions and policies regarding restrictions on rare earth exports are consistent with W.T.O. rules,” said Nefeterius A. McPherson, a spokeswoman for the office. “We will be monitoring any new developments with the same concerns in mind.”

Dudley Kingsnorth, a rare earth market analyst at the Industrial Minerals Company of Australia in Perth, said that if China adopted a further reduction in export quotas of 30 percent for next year, manufacturers elsewhere could face difficulties.

“That will create some problems,” he said. “It’ll force some people to look very carefully at the use of rare earths, and we might be reverting to some older technologies until alternative sources of rare earths are developed.”

Hiroko Tabuchi contributed reporting from Tokyo.

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Sleep easy mate, rare earth metals are anything but rare. The chinese undercut everyone for years which is why they have the market. If they stop exporting we'll just have to dig our own out of the ground. Nothing to see, move along.

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"for the re-establishment of rare earth mining and manufacturing in the United States. Most of the industry has moved to China over the last two decades because of lower costs and weak environmental enforcement there. "

our short sightedness for a quick cost saving knows no bounds....

"we will save you 15% for no charge! all we ask is your children's future"

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"for the re-establishment of rare earth mining and manufacturing in the United States. Most of the industry has moved to China over the last two decades because of lower costs and weak environmental enforcement there. "

our short sightedness for a quick cost saving knows no bounds....

"we will save you 15% for no charge! all we ask is your children's future"

This is the flaw with capitalism. Its great when everyone plays by the rules, but don't forget monopolies and large communist dictatorships don't usually like to play fair even if they like to play at capitalism.

There is often little difference between a dictatorship and a large monopoly, and in China's case its trying to be both,

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If they stop exporting we'll just have to dig our own out of the ground.

Haha. You make it sound easy. What about cost? What about delay before mines can be active? What about sufficient supply?

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"for the re-establishment of rare earth mining and manufacturing in the United States. Most of the industry has moved to China over the last two decades because of lower costs and weak environmental enforcement there. "

our short sightedness for a quick cost saving knows no bounds....

"we will save you 15% for no charge! all we ask is your children's future"

But profit is good.

Our stupidity is amazing.

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Haha. You make it sound easy. What about cost? What about delay before mines can be active? What about sufficient supply?

For the next 5-10 years there maybe a shortage. Hence we will have to bend over and take it from the Chinese in the interim. However their behaviour displays the clear need for an alternative, and others will step up to the plate. In the longer term the Chinese have shot themselves spectacularly in the foot, as it diminishes trust. Recently they appear to have gone out of their way to antagonise everyone - Americans, Japanese, Vietnamese, most of SE Asia and now Europe. Having those managers shooting their African employees in Zambia probably didn't help either. They are going to end up being loathed on an American scale.

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Yeah. No doubt if our economy if crippled there will be plenty of people blaming the Chinese.

Most people will conveniently forget that we did it to ourselves.

Yes. The unions wanted more money, so their mates at the banking system duly obliged..............and here we are.

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This is the flaw with capitalism. Its great when everyone plays by the rules, but don't forget monopolies and large communist dictatorships don't usually like to play fair even if they like to play at capitalism.

There is often little difference between a dictatorship and a large monopoly, and in China's case its trying to be both,

But are all capitalists crooks? Crooks and fraudsters are the problem, not capitalists.

People employ capital all the time without the need to resort to crime.

??

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Will they be taking these minerals out of Ipods, computers etc. before they send them to us?

I am not sure we would know what to do with them in a raw state anymore anyway.

We would have to send the stuff back with a note asking them to make something useful with it.

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There's a new rare metal mine opening in Western Australia soon (or just opened).

Hopefully with these sorts of incidents there will be backlash protectionism against imported chinese crap?

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It sounds to me that if they're willing to do back breaking, dangerous work on the cheap for us, it shouldn't be something to be sad about.

What is sad, is that all the gains (lower goods prices) the average person has in the west, are cancelled out by higher rents and larger mortgages, due to the tax regime.

Edited by Traktion

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It is easy to underestimate the market's ability to solve supply problems, especially if like me you are a bit of a lefty.

For a couple of weeks last year almost all the world production of glycerol was being done in the UK, thanks to a freak combination of supply issues and exchange rates. People and plant can be adapted and deployed very quickly when the incentives are right.

I think the world could get by without Chinese rare earths if it needed to.

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It is easy to underestimate the market's ability to solve supply problems, especially if like me you are a bit of a lefty.

For a couple of weeks last year almost all the world production of glycerol was being done in the UK, thanks to a freak combination of supply issues and exchange rates. People and plant can be adapted and deployed very quickly when the incentives are right.

I think the world could get by without Chinese rare earths if it needed to.

Rare earth: The New Great Game

Paul Mason put forward a good argument on Newsnight a while back regarding this.

Used the Toyota Prius as an example.

The USA's most advanced weapons need rare earths.

Edited by Dan1

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Sleep easy mate, rare earth metals are anything but rare. The chinese undercut everyone for years which is why they have the market. If they stop exporting we'll just have to dig our own out of the ground. Nothing to see, move along.

Complete rubbish

This is priority #1 for my company - one supplier just put up prices of Ce-containing material key to our product by over 140%. There is no easy or quick alternative to the multi- tonne scales we need

bad bad bad :angry: :(

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The local colleges in my area of China (east coast) are not letting students walk outside of the campus and this has been in effect for a whole week now. I heard it's because of issues with Japan, but more likely I think it's a drill in preperation for war with Japan and Western countries.

I've also seen some Chinese military planes flying overhead here at night time, flying low and very loud in formations of two. I believe China's military capability is much higher than people think. I also heard that people have quietly been encouraged to not buy Japanese goods, which would certainly correspond with the rare earth metals ban to Japan.

I believe China are gearing up for war and protectionism. A war with the US could be inevitable, the rare earth metals ban is definitely the first strike. Most likely China are striking out first so they can catch the US by surprise.

I'm worried :(

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This is great news, hopefully it'll stop the gov't from making more bloody wind turbines.

Also the fact that you can't rely on Globalism or the fekked "just in time" model they just love to follow in the UK for our food and energy supply.

Every UK politician for last 30 yrs should be stripped of all their entitlements and homes for letting this happen!

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The local colleges in my area of China (east coast) are not letting students walk outside of the campus and this has been in effect for a whole week now. I heard it's because of issues with Japan, but more likely I think it's a drill in preperation for war with Japan and Western countries.

I've also seen some Chinese military planes flying overhead here at night time, flying low and very loud in formations of two. I believe China's military capability is much higher than people think. I also heard that people have quietly been encouraged to not buy Japanese goods, which would certainly correspond with the rare earth metals ban to Japan.

I believe China are gearing up for war and protectionism. A war with the US could be inevitable, the rare earth metals ban is definitely the first strike. Most likely China are striking out first so they can catch the US by surprise.

I'm worried :(

I'm along the same lines. An embargo of RE is not about high prices due to export restrictions anymore, it's as close as it gets to a declaration of war.

What bothers me is that this is the best card the Chinese have. Despite all the wishy washy talk of the poor Chinese worker doing work evil westerners wouldn't do, this near monopoly has been politburo policy and in the making for over 20 years.

And they are playing it _now_!

Playing your best card usually means a limited number of things, none of them good when the player is an angry nationalist stuffed with nukes and run by dictatorial leaders.

Edited by _w_

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The local colleges in my area of China (east coast) are not letting students walk outside of the campus and this has been in effect for a whole week now. I heard it's because of issues with Japan, but more likely I think it's a drill in preperation for war with Japan and Western countries.

I've also seen some Chinese military planes flying overhead here at night time, flying low and very loud in formations of two. I believe China's military capability is much higher than people think. I also heard that people have quietly been encouraged to not buy Japanese goods, which would certainly correspond with the rare earth metals ban to Japan.

I believe China are gearing up for war and protectionism. A war with the US could be inevitable, the rare earth metals ban is definitely the first strike. Most likely China are striking out first so they can catch the US by surprise.

I'm worried :(

I would be too, the antagonism with Japan is disturbing. The US has just declared it will flood the world with $ and will do to China what it did to Japan 20 years ago. The Chinese are going to find their aggressive mercantilism and sending of it's profits abroad in the form of loans to it's biggest customer will prove to have been ultimately a stupid policy.

Let your currency strengthen and face regime threatening unemployment, or continue to peg to $ and import massive inflation and have another type of regime threat. Great choices, great position to be in, who can still admire the Chinese?

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The local colleges in my area of China (east coast) are not letting students walk outside of the campus

How does that work? Literally banned from leaving the campus? Care to name some? Local students no longer allowed to go home? Sounds very odd...

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The local colleges in my area of China (east coast) are not letting students walk outside of the campus and this has been in effect for a whole week now. I heard it's because of issues with Japan, but more likely I think it's a drill in preperation for war with Japan and Western countries.

I've also seen some Chinese military planes flying overhead here at night time, flying low and very loud in formations of two. I believe China's military capability is much higher than people think. I also heard that people have quietly been encouraged to not buy Japanese goods, which would certainly correspond with the rare earth metals ban to Japan.

I believe China are gearing up for war and protectionism. A war with the US could be inevitable, the rare earth metals ban is definitely the first strike. Most likely China are striking out first so they can catch the US by surprise.

I'm worried :(

I read recently that UK airspace is being regularly overflown by russian fighters, aparently one was tailed for four hours in UK airspace a few weeks ago and we did nothing.

I reckon when our currencies are worthless and we can't heat our homes and refuel our military then the world changes.

I too am getting worried if these episodes are genuine..

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  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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