CIAO DATE: 01/2011
November 2010
Centre for European Policy Studies
Relations between China and the West have been difficult for some time. Recently, however, one issue in particular has made the headlines: rare earths. Vital for the production of low-carbon products such as hybrid cars and wind turbines, consumer goods and sensitive military hardware like cruise missiles and smart bombs, rare earths are indispensable for high-tech industries and emerging technologies. With China responsible for the production of almost 97% of these rare earth elements (REE), recent Chinese reductions in exports, coupled with increasing export taxes, are causing jitters not only in the markets but also politically.
Resource link: Unearthing China's Rare Earths Strategy [PDF] - 131K