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> but also strategic value, as China currently is the only source for some rare earths China effectively subsidizes mining for strategic purposes. Cheaper mini
by wisty 15y ago
> but also strategic value, as China currently is the only source for some rare earths
China effectively subsidizes mining for strategic purposes. Cheaper mining = cheaper manufacturing = strong industrial base = higher employment and lots of foreign IP to acquire.
This blew up in their face for rare earths, because they are valuable enough that shipping isn't a big deal, so cheaper rare earths in China just means cheaper rare earths in Japan.
If they didn't subsidize mining, or they keep restricting exports, people will look elsewhere. I'm not sure if China has particularly good reserves, I think they just dig it up cheaper, because they want to feed their industrial base.
- AutoCorrect 15y agoless environmental controls, that's the biggest reason it's cheaper.
- wisty 15y agoI said "effectively subsidizes". Environmental controls is one factor. Cheap land / water use is another. OH&S standards, favorable tax, there's a lot of ways it can be done if the government decides it's strategically important. That attitude will start changing now that they have plenty of IP, and they no longer suck at engineering low cost stuff.