This is been common understanding nowadays that China includes a monopoly on rare earth minerals. Sure, other areas around the globe may have huge deposits, however when it involves production, nobody compares to beating China. This type of geopolitical-economic clout has become getting used to get affordable, if worrying, effect. News just damaged that China won't export any rare earth minerals for any whole month. Within the board rooms around the globe s biggest electronic companies, many people are most likely wincing at this time.
Why is this so astounding may be the condition-controlled rare earth production conglomerate Inner Mongolia Baotou Steel Rare Earth Group has expressed its intentions in plain language. To put it simply, by halting its production and export for any month prices are likely to inflate, basically.
The actual mind scratcher is exactly what s motivating this type of blatant energy play. Some experts and journalists believe that China has been smartly selfish. There s an indication of magnet production because of its own domestic industries which are rare earth intensive.
The implications of these moves, however, are frightening. If the type of reckless behavior becomes standard then the world has joined a brand new era of competition where not nations, but whole industries go face to face on the massive scale.
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Source Daily Tech
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