[LINK] China Blocks Vital Exports to Japan - or not?

[Tom Koltai]

Whether or not China is blocking vital exports, There is a lesson for
Australia in China's management of their raw rare minerals.... 

i.e.: the para that states:


> > But no ban has been  imposed on the  
> > export to Japan of semi-processed alloys that combine rare earths  
> > with other materials, the officials said. China has been trying to  
> > expand its alloy industry so as to create higher-paying jobs in  
> > mining areas, instead of exporting raw materials for initial  
> > processing.


What a shame that we don't insist to our trading partners that the raw
ore must be processed prior to export.

Think of the jobs that we could create.





> -----Original Message-----
> From: link-bounces at mailman.anu.edu.au 
> [mailto:link-bounces at mailman.anu.edu.au] On Behalf Of Kim Holburn
> Sent: Friday, 24 September 2010 1:27 PM
> To: Link list
> Subject: [LINK] China Blocks Vital Exports to Japan - or not?
> 
> 
> https://www.nytimes.com/2010/09/23/business/global/23rare.html?_r=1
> 
> > Amid Tension, China Blocks Vital Exports to Japan By KEITH BRADSHER
> > Published: September 22, 2010
> > HONG KONG - Sharply raising the stakes in a dispute over Japan's  
> > detention of a Chinese fishing trawler captain, the Chinese  
> > government has blocked exports to Japan of a crucial category of  
> > minerals used in products like hybrid cars, wind turbines 
> and guided  
> > missiles.
> >
> > Isaac Brekken for The New York Times
> > An engine of a Toyota Prius. Each Prius uses at least two pounds of
> > rare earth elements in its various parts.
> >
> > Chinese customs officials are halting shipments to Japan of so-
> > called rare earth elements, preventing them from being loading  
> > aboard ships at Chinese ports, industry officials said on Thursday.
> >
> > On Tuesday, Prime Minister Wen Jiabao personally called for Japan's
> > release of the captain, who was detained after his vessel collided  
> > with two Japanese coast guard vessels about 40 minutes apart as he  
> > tried to fish in waters controlled by Japan but long claimed by  
> > China. Mr. Wen threatened unspecified further actions if Japan did  
> > not comply.
> >
> .....
> 
> > China mines 93 percent of the world's rare earth minerals, and more
> > than 99 percent of the world's supply of some of the most prized  
> > rare earths, which sell for several hundred dollars a pound.
> 
> .....
> 
> > "By stopping the shipments, they're disrupting commercial contracts,
> > which is regrettable and will only emphasize the need for 
> geographic  
> > diversity of supply," he said. He added that in addition to 
> telling  
> > companies to halt exports, the Chinese government had also  
> > instructed customs officials to stop any exports of rare earth  
> > minerals to Japan.
> >
> > Industry officials said that mainland China's customs agency had
> > notified companies that they were not allowed to ship to Japan any  
> > rare earth oxides, rare earth salts or pure rare earth metals,  
> > although these shipments are still allowed to go to Hong Kong,  
> > Singapore and other destinations. But no ban has been 
> imposed on the  
> > export to Japan of semi-processed alloys that combine rare earths  
> > with other materials, the officials said. China has been trying to  
> > expand its alloy industry so as to create higher-paying jobs in  
> > mining areas, instead of exporting raw materials for initial  
> > processing.
> >
> > Japan has been the main buyer of Chinese rare earths for many years,
> > using them for a wide range of industrial purposes, like making  
> > glass for solar panels. They are also used in small 
> steering control  
> > motors in conventional gasoline-powered cars as well as in motors  
> > that help propel hybrid cars like the Toyota Prius.
> >
> 
> 
> http://www.sbs.com.au/news/article/1362026/China-blocks-crucia
> l-metal-exports-to-Japan
> > China denies blocking metal exports to Japan
> 
> 
> > China has denied is has blocked all exports of rare earth metals to
> > Japan, stepping up the pressure on Tokyo to release a Chinese boat  
> > captain detained in disputed waters, a report said on Thursday.
> 
> > Reports said China has halted all shipments to Japan of the group of
> > metals, essential for the making of iPods, electric cars 
> such as the  
> > Toyota Prius, missiles, wind turbines and a range of other 
> products,  
> > the New York Times reported, citing unnamed industry sources.
> >
> > But China swiftly moved to damped down the claims.
> >
> > Japan and China are embroiled in their worst diplomatic row in
> > years, sparked by the captain's arrest following the September 7  
> > collision of his trawler with two Japanese coastguard 
> vessels in the  
> > East China Sea.
> >
> > Although other sources are being investigated, China supplies at
> > least 95 per cent of the world's rare earths, as this map 
> shows.  It  
> > had previously cut its export limit for the minerals, 
> sending market  
> > prices soaring and sparking concerns among foreign governments and  
> > companies.
> >
> > Chinese Premier Wen Jiabao this week threatened "further actions" if
> > the captain was not released. Beijing has already suspended high- 
> > level contacts with Tokyo and called off several official visits.
> >
> > The issue of cutting the export of the metals in question has long
> > worried both Japan and Korea. China says it needs the 
> metals for its  
> > industry - and as it has long invested in the harvesting of the  
> > metals, it should reap the rewards, or so the logic goes.
> >
> > Last month, before the row erupted, Japan had urged China to expand,
> > not restrict, its exports of rare earths
> >
> 
> 
> 
> -- 
> Kim Holburn
> IT Network & Security Consultant
> T: +61 2 61402408  M: +61 404072753
> mailto:kim at holburn.net  aim://kimholburn
> skype://kholburn - PGP Public Key on request
> 
> 
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