wrdos wrote:- it is rare earth, not rare metal
- A large sector of Japanese industry depends on rare earth as an essential input
It is this kind of obfuscation that prevents you from seeing this episode between China and Japan as nothing short of an unmitigated disaster. China has lost a lot of goodwill and trust in the world.
- Rare earth export consists only a tiny fraction of Chinese economy, in fact negligible and the Chinese government has planned to stop its export.
- China and Japan were shouting at each other at that time, rare earth was used as a signal to Japan by then
- Even Sino-Japanese relationship had no trouble at that time, the Chinese government will stop rare earth sooner or later; it was a decided policy.
Keep pumping the lie that this was just policy as usual and that the conflict with Japan had nothing to do with the decision to restrict the supply. The world sees it otherwise and will react accordingly, as Japan is doing. They have already signed an agreement with Vietnam for rare earth minerals.
This episode will make it easier for countries like US, EU, etc (free marketers) to consider and slap trade restrictions on China. It makes US decision not to sell Unocal to China as prescient, whereas it was held up as an example of American hypocrisy.