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Chinese Earth Metals
In the recent months, the Chinese government has stopped the export of earth metals to several other countries, including Japan and, in October of 2010, the United States as well. Over the last few years, there has been a subterranean conflict between the two Asian nations over the topic of earth metals and their distribution throughout the world. This is a very serious situation. China has a near-monopoly on the production of rare earth metals which are used to produce everything from compact batteries to military hardware (Fernando). Without the access to these materials, it is nigh on impossible to continue the production of modern technological products. Japan, as a major manufacturer of technologies like cellular phones and satellites, the inability to acquire earth metals will have the potential to hinder and retard the continued production and progress of these technologies. The inclusion of the United States in this unofficial embargo was in response to the United States' perceived impropriety. Restrictions on export of earth metals to the United States were "to denounce United States trade actions" (Lubin). Since the Chinese government controls approximately 95% of the world's rarest earth metals, there is very little these nations can do to prevent further punishment from China. As a government resource, the United Nations or other international agencies have limited abilities to coerce the Chinese people into cooperating with the United States or with Japan.
The problem with any monopolized enterprise is that the group who owns the majority claim of that enterprise can do whatever they like with the product. On March…
Works Cited:
Fernando, Vincent. "China Denies Cutting Off Rare Earth Metal Exports to Japan as a Political
Weapon." Business Insider. 2010. Print.
Jing, Jin. "China to Raise Tax on Rare Earth Metals." The Epoch Times. 2011. Print.
Lubin, Gus. "China Just Banned Export of Rare Earth Metals to the U.S." Business Insider. 2010.
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