Chapter 18 15. China's Rare Earth Wealth

China holds 97% of the world's total rare earth resources.This is a real asset!Almost a monopoly... When China is importing a large amount of resources, especially energy, it actually possesses a class of metal resources called "rare earth", and its reserves are very rich.These precious metals are irreplaceable. What are rare earths?From an economic and strategic point of view, rare earths are indispensable in all high-tech industries. These 17 precious metals with electromagnetic properties are used in the manufacture of high-tech products: electronics, weaponry, lasers, renewable energy, and more.

Rare earth resources account for 17% of the total mineral resources. These irreplaceable chemical elements are now as essential as oil.China, the world's factory devoted to high-tech development, is currently the largest consumer of these metals. Chinese leader Deng Xiaoping's reference to "future oil" makes a lot of sense.The former Chinese leader and the visionary father of China's reforms once pointed out that if the Middle East has their oil, then China has our rare earths.This assertion has been best verified today... Without rare earths, there would be no electric or hybrid cars, no telephones and iPods, no new generation of high-speed trains, computers, warheads, fiber optics, and so on.

Likewise, catalytic converters, semiconductors, night vision devices, batteries, energy-saving light bulbs, flat-screen displays, solar panels, and even the processing of food, waste, and livestock would not be possible without rare earths… In 2011, China will reduce the export of rare earths.China, like the world, cannot stop developing high-tech fields.It is essential for this emerging economy to exploit tens of thousands of tons of ore (125,000 tons in 2011) every year. The price of these rare earths is skyrocketing: by the kilogram!Rare earth will be one of the necessary resources in the future.It only needs to add trace amounts of rare earth elements in different stages of production, and the product can show anti-corrosion, smooth and flat, magnetic, luminous and other characteristics.

Rare earths are used in weapons, health, oil refining and other fields.Their prices are not set by the ton, but by the kilo.So don't be surprised when we see the prices of these 17 coveted rare earths skyrocket! This is an advantage, but there are also disadvantages!The extraction and processing of rare earths takes a long time and involves some pollution.The extraction process requires chemicals that emit large amounts of greenhouse gases. Even though Chinese officials have an inherent advantage in deciding on quotas and can have a better development environment, the competition for rare earths has only just begun.

These minerals are ubiquitous on Earth, but their extractability varies widely.Over the years, many countries have given up mining them.If you want to reuse these mining areas, you must re-explore and make technical adjustments, and it will take time! The United States mines 15% of its reserves and gradually begins to produce rare earths locally.However, under the current situation, the global demand for rare earths is in short supply, and the Chinese government has reduced the export quota of rare earths, which makes the industries of Western countries such as the United States, Japan and the European Union feel uneasy.

Rare earths are necessary strategic resources.This strategic and technological advantage is China's new trump card!