China has been stockpiling the rare elements for some time now. They're necessary for a lot of high-tech goods, and would be very useful as a trade lever. Reg

China has been stockpiling the rare elements for some time now. They're necessary for a lot of high-tech goods, and would be very useful as a trade lever. Regarding the embargo on Japan, it was seen as a response to the recent territorial disputes over the Senkaku isles. China later stated that they weren't embargoing nuthin', but importers here in Japan were having a lot of problems getting shipments in due to much more strenuous customs inspections, etc. The Japanese response has been to open dialogue with Mongolia about starting mines for rare earth minerals there, as Mongolia are supposed to have a great deal of reserves.