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US, EU And Japan Challenge China Over Rare Earth Minerals At WTO

Huffington Post UK   First Posted: 14/03/2012 11:43 Updated: 14/03/2012 11:50

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China is stockpiling the precious minerals that make up every mobile phone, effectively monopolising future phone production, according to the EU, US and Japan.

The group of countries has taken their complaint to the World Trade Organisation. They are specifically challenging China’s export restrictions on the raw materials that go into mobiles, including 17 rare earths used in high-tech products, tungsten and molybdenum.

While the elements, sometimes referred to as conflict minerals, aren't as rare as diamonds, they only exist only in small deposits, which makes extracting them expensive.

The complaint has precedence. Earlier this year, the WTO ruled in favour of the EU, finding that China had illegally restricted the export of bauxite, zinc and magnesium which all contribute to phone manufacture.

CNN reports that Barack Obama yesterday made a statement at the White House announcing the complaint: "We want our companies building those products right here in America," Obama said. "But to do that, American manufacturers need to have access to rare earth materials which China supplies. Now, if China would simply let the market work on its own, we'd have no objections."

Read the complaint in full on the WTO website.

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crystakura
61 Fans
12:39 PM on 03/15/2012
And? It belongs to them therefore they can do whatever they want with it.
The US, EU and Japan can go find substitutes if they are really that concerned.
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daveyb0927
11 Fans
08:39 PM on 03/14/2012
There two ways to deal with a monopoly of a raw material.
One. Find a replacement source.
Two. Find a substitute.
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honesttaxpayer
52 Fans
03:19 PM on 03/14/2012
Its called capitalism you pathetic fools!
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Vespasian
13 Fans
03:15 PM on 03/14/2012
Yes this is economic warfare. By China against us. They used the threat of an embargo of these minerals to bring Japan to heel over some Chinese fishing boat captain, arrested for violating Japan’s fishing regulations in Japanese waters. I think they were surprised at how easy it was to get Japan to roll over. Unfortunately America has used economic warfare more than once in the past 50 years... our hands aren't clean.

But rather than whining about it we should simply go back into production here in the USA. My understanding is that there are still rich deposits of these minerals right here in America, as well as in Canada, in Australia, Afghanistan, etc, etc. I’m not sure why we allowed the sale of this strategic business to China but it’s really only a question of money for us (ie. the USA) to get back in the business. Since this a strategic resource, if private business can’t do it the government should.

A little socialism might be a good thing here. I suppose the republican dominated House of Ill Repute will try to stop such a heretical idea. But this really is a strategic resource and we need to reverse the silly decision to allow China to purchase world control of it for a few bucks... who ever made that decision. Oops... that was Bush/Cheney... oh my.

Dare one call it treason?
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