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Nope, rare earth elements are common pretty much everywhere. The only reason companies buy them from China is because they're cheaper due to their lower wages a

Nope, rare earth elements are common pretty much everywhere. The only reason companies buy them from China is because they're cheaper due to their lower wages and lack of environmental protection. When China limited export of rare earths, leading to a dispute with Western countries, all that happened was suddenly Western mining firms became viable and attracted investment. China then dropped the export limits and dropped the price to force those companies out of business.

semi-extrinsic 7y ago
Same thing the Chinese did with solar panels back in the early 2000s. Subsidise national production so it could run at a loss, forcing others out of business and cornering the market. In some sense it's pretty obvious that a free market capitalist system will mostly lose in competition with a state regulated system, if the latter decides it is important to have control of a sector.
- 101404 7y ago
  Ironically, around the same time, China was admitted to the WTO.
- mrfusion 7y ago
  On the other hand China is giving us free money/stuff when they sell it below cost.
  - tashoecraft 7y ago
    Yes, so on the short term that’s a benefit. But when it means the us/world doesn’t invest in a crucial piece of our infrastructure that would take many years to establish then it’s a net loss.
- AnthonyMouse 7y ago
  > In some sense it's pretty obvious that a free market capitalist system will mostly lose in competition with a state regulated system, if the latter decides it is important to have control of a sector through tying or dumping. This is not really specific to state control -- it's a classic antitrust problem. A monopoly in one sector leverages it into control of another sector. The problem being, what do you use for a remedy in this case? The US DoJ can't exactly break up the Chinese government.
nickik 7y ago
Yes, I know they are common. That doesn't change the fact that I was right. There is basically no rare earth mining and refining in the US or anywhere in the Western world. The refining capacity is all in China, and if China would stop allowing export it would absolutly cause an huge issue. Adding mining and refinining capcity is a very significant challange.

semi-extrinsic 7y ago

Same thing the Chinese did with solar panels back in the early 2000s. Subsidise national production so it could run at a loss, forcing others out of business and cornering the market. In some sense it's pretty obvious that a free market capitalist system will mostly lose in competition with a state regulated system, if the latter decides it is important to have control of a sector.

101404 7y ago
Ironically, around the same time, China was admitted to the WTO.
mrfusion 7y ago
On the other hand China is giving us free money/stuff when they sell it below cost.
- tashoecraft 7y ago
  Yes, so on the short term that’s a benefit. But when it means the us/world doesn’t invest in a crucial piece of our infrastructure that would take many years to establish then it’s a net loss.
AnthonyMouse 7y ago
> In some sense it's pretty obvious that a free market capitalist system will mostly lose in competition with a state regulated system, if the latter decides it is important to have control of a sector through tying or dumping. This is not really specific to state control -- it's a classic antitrust problem. A monopoly in one sector leverages it into control of another sector. The problem being, what do you use for a remedy in this case? The US DoJ can't exactly break up the Chinese government.

nickik 7y ago

Yes, I know they are common. That doesn't change the fact that I was right. There is basically no rare earth mining and refining in the US or anywhere in the Western world. The refining capacity is all in China, and if China would stop allowing export it would absolutly cause an huge issue. Adding mining and refinining capcity is a very significant challange.