The Chinese will begin shipping the rare earth metals that have gained so much media attention.
A major problem is that China supplies 95% of the world's rare earth metals. These are crucial in making high tech products.
Another problem is that these minerals are now being affected by China's export quotas . The price and the demand are now much higher than the levels they were a few years ago.
The export quotas and extra price have also encouraged many companies to simply move production inside China - another goal of the Chinese government.
Considering the U.S. economy is barely floating on our production and service with high tech products, we cannot afford to cut off China.
Is this how the Chinese are reacting to curtailing or limiting their exports so that others countries like the US can balance their trade deficit?
ReplyDeleteBut then again, these limits are hurting the US-did they not think this one through?