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The participants argue that infrequent earths are necessary to the knowledge know-how revolution on which people have come to count for conversation, trade, and, more and more, interact in clash. They reveal that infrequent earths are a strategic commodity over which political actors will and do fight for keep an eye on.
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Additional resources for The Political Economy of Rare Earth Elements: Rising Powers and Technological Change
The central finding of the chapter is that innovation is currently more crucial to the rare earth supply chain than is supply security. Due to the technology gap, most Chinese producers in the rare earth downstream and end-use sector focus on low-value products. The few producers of high-value products often pay high royalty fees to the foreign patent owners. This limits the international competitiveness of the Chinese rare earth supply chain. The Chinese policy measures do, to a certain degree, address the problem of rapid depletion.
3 Illegal mining and resource conservation From this perspective, China’s physical supply security is not presently at risk, but the fast depletion rate could lead to a shortage of rare earths in the long-term. In particular the widespread and inefficient illegal extraction contributes to the rapid depletion of rare earths. Although the central government was successful in dramatically decreasing official extraction after 2007, the biggest problem for resource conservation is illegal mining. The problem of illegal mining originates in the 1980s when the central government welcomed the proliferation of small private miners and weak regulation in order to incite resource extraction in support of economic development objectives.
Ruberti, M. (2013) ‘Rare Earth Elements as Critical Raw Materials: Focus on International Markets and Future Strategies’, Resources Policyy 38(1): 36–43. Mcsweeney, B. (1999) Security, Identity and Interests: A Sociology of International Relations, Cambridge: Cambridge University Press. Mentzer, J. T. et al. (2001) ‘Defining Supply Chain Management’, Journal of Business logistics 22(2): 1–25. Morgenthau, H. , Thompson, K. , & Clinton, W. D. , Boston: McGraw-Hill Higher Education. Nye, J. S.
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