IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v38y2013i3p384-394.html
   My bibliography  Save this article

Rare earth elements in China: Policies and narratives of reinventing an industry

Author

Listed:
  • Wübbeke, Jost

Abstract

After top producer China decided in 2010 to tighten its export quotas for rare earth elements (REE), major customers feared being cut off from the valuable metals. The trade dispute intensified when the EU, the USA, and Japan brought the case before the WTO. The export controls raise questions about China’s intentions and strategies. This article argues that China’s export policy should not be viewed in isolation. The export controls are embedded in a greater transformation of the strategic REE industry. Beijing promotes a broad set of policies, including industry reorganization, resource conservation, and environmental protection. Next, the article examines three narratives that may be constitutive of the Chinese policy. Findings indicate that the geopolitical narrative, which sees natural resources as instruments of power politics, can be only partly attributed to China’s REE policies. The major driving motives are domestic concerns for resource conservation and environmental protection, as well as the development of competitive downstream industries.

Suggested Citation

  • Wübbeke, Jost, 2013. "Rare earth elements in China: Policies and narratives of reinventing an industry," Resources Policy, Elsevier, vol. 38(3), pages 384-394.
    • Handle: RePEc:eee:jrpoli:v:38:y:2013:i:3:p:384-394
    DOI: 10.1016/j.resourpol.2013.05.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142071300041X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2013.05.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michele Ruta & Anthony J. Venables, 2012. "International Trade in Natural Resources: Practice and Policy," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 331-352, August.
    2. Massari, Stefania & Ruberti, Marcello, 2013. "Rare earth elements as critical raw materials: Focus on international markets and future strategies," Resources Policy, Elsevier, vol. 38(1), pages 36-43.
    3. Barbara Fliess & Tarja Mård, 2012. "Taking Stock of Measures Restricting the Export of Raw Materials: Analysis of OECD Inventory Data," OECD Trade Policy Papers 140, OECD Publishing.
    4. Bin GU, 2011. "Mineral Export Restraints and Sustainable Development--Are Rare Earths Testing the WTO's Loopholes?," Journal of International Economic Law, Oxford University Press, vol. 14(4), pages 765-805, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pothen, Frank, 2013. "The metal resources (METRO) model: A dynamic partial equilibrium model for metal markets applied to rare earth elements," ZEW Discussion Papers 13-112, ZEW - Leibniz Centre for European Economic Research.
    2. Zhou, Lei & Xiao, Wen & Yan, Na, 2023. "International comparative research on the relevance of science and technology and the innovation ability of the rare earth industry-from the perspective of technology-industry mapping based on patent ," Resources Policy, Elsevier, vol. 80(C).
    3. Shuai, Jing & Peng, Xinjie & Zhao, Yujia & Wang, Yilan & Xu, Wei & Cheng, Jinhua & Lu, Yang & Wang, Jingjin, 2022. "A dynamic evaluation on the international competitiveness of China's rare earth products: An industrial chain and tech-innovation perspective," Resources Policy, Elsevier, vol. 75(C).
    4. Aziman, Eli Syafiqah & Ismail, Aznan Fazli & Rahmat, Muhammad Abdullah, 2023. "Balancing economic growth and environmental protection: A sustainable approach to Malaysia's rare-earth industry," Resources Policy, Elsevier, vol. 83(C).
    5. Packey, Daniel J. & Kingsnorth, Dudley, 2016. "The impact of unregulated ionic clay rare earth mining in China," Resources Policy, Elsevier, vol. 48(C), pages 112-116.
    6. Pothen, Frank, 2014. "Dynamic market power in an exhaustible resource industry: The case of rare earth elements," ZEW Discussion Papers 14-005, ZEW - Leibniz Centre for European Economic Research.
    7. Leng, Zhihui & Sun, Han & Cheng, Jinhua & Wang, Hai & Yao, Zhen, 2021. "China's rare earth industry technological innovation structure and driving factors: A social network analysis based on patents," Resources Policy, Elsevier, vol. 73(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Charlier, Christophe & Guillou, Sarah, 2014. "Distortion effects of export quota policy: an analysis of the China-Raw Materials dispute," China Economic Review, Elsevier, vol. 31(C), pages 320-338.
    2. ZHANG, Lu & GUO, Qing & ZHANG, Junbiao & HUANG, Yong & XIONG, Tao, 2015. "Did China׳s rare earth export policies work? — Empirical evidence from USA and Japan," Resources Policy, Elsevier, vol. 43(C), pages 82-90.
    3. Solleder, Jean-Marc, 2020. "Market power and export taxes," European Economic Review, Elsevier, vol. 125(C).
    4. Baldi, Lucia & Peri, Massimo & Vandone, Daniela, 2014. "Clean energy industries and rare earth materials: Economic and financial issues," Energy Policy, Elsevier, vol. 66(C), pages 53-61.
    5. Machacek, Erika & Fold, Niels, 2014. "Alternative value chains for rare earths: The Anglo-deposit developers," Resources Policy, Elsevier, vol. 42(C), pages 53-64.
    6. Yang, Xiaoming & Islam, Md. Monirul & Mentel, Grzegorz & Ahmad, Ashfaq & Vasa, László, 2024. "Synergistic dynamics unveiled: Interplay between rare earth prices, clean energy innovations, and tech companies' market resilience amidst the Covid-19 pandemic and Russia-Ukraine conflict," Resources Policy, Elsevier, vol. 89(C).
    7. Li, Zheng-Zheng & Meng, Qin & Zhang, Linling & Lobont, Oana-Ramona & Shen, Yijuan, 2023. "How do rare earth prices respond to economic and geopolitical factors?," Resources Policy, Elsevier, vol. 85(PA).
    8. Rashid Khan, Haroon Ur & Islam, Talat & Yousaf, Sheikh Usman & Zaman, Khalid & Shoukry, Alaa Mohamd & Sharkawy, Mohamed A. & Gani, Showkat & Aamir, Alamzeb & Hishan, Sanil S., 2019. "The impact of financial development indicators on natural resource markets: Evidence from two-step GMM estimator," Resources Policy, Elsevier, vol. 62(C), pages 240-255.
    9. Ge, Jianping & Lei, Yalin, 2018. "Resource tax on rare earths in China: Policy evolution and market responses," Resources Policy, Elsevier, vol. 59(C), pages 291-297.
    10. Stephanie Switzer & Leonardus Gerber & Francesco Sindico, 2015. "Access to Minerals: WTO Export Restrictions and Climate Change Considerations," Laws, MDPI, vol. 4(3), pages 1-21, September.
    11. Thibeault, Al & Ryder, Michael & Tomomewo, Olusegun & Mann, Michael, 2023. "A review of competitive advantage theory applied to the global rare earth industry transition," Resources Policy, Elsevier, vol. 85(PA).
    12. Wang, Xingxing & Li, Huajiao & Yao, Huajun & Zhu, Depeng & Liu, Nairong, 2018. "Simulation analysis of the spread of a supply crisis based on the global natural graphite trade network," Resources Policy, Elsevier, vol. 59(C), pages 200-209.
    13. Tomer Fishman & Rupert J. Myers & Orlando Rios & T.E. Graedel, 2018. "Implications of Emerging Vehicle Technologies on Rare Earth Supply and Demand in the United States," Resources, MDPI, vol. 7(1), pages 1-15, January.
    14. Dino, Giovanna Antonella & Cavallo, Alessandro & Faraudello, Alessandra & Piercarlo, Rossi & Mancini, Susanna, 2021. "Raw materials supply: Kaolin and quartz from ore deposits and recycling activities. The example of the Monte Bracco area (Piedmont, Northern Italy)," Resources Policy, Elsevier, vol. 74(C).
    15. Schlinkert, Dominik & van den Boogaart, Karl Gerald, 2015. "The development of the market for rare earth elements: Insights from economic theory," Resources Policy, Elsevier, vol. 46(P2), pages 272-280.
    16. Lucia BALDI & Massimo PERI & Daniela VANDONE, 2013. "Clean Energy Industries and Rare Earth Materials: Economic and Financial Issues," Departmental Working Papers 2013-07, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    17. González-Val, Rafael & Pueyo, Fernando, 2019. "Natural resources, economic growth and geography," Economic Modelling, Elsevier, vol. 83(C), pages 150-159.
    18. Riddle, Matthew & Macal, Charles M. & Conzelmann, Guenter & Combs, Todd E. & Bauer, Diana & Fields, Fletcher, 2015. "Global critical materials markets: An agent-based modeling approach," Resources Policy, Elsevier, vol. 45(C), pages 307-321.
    19. Margherita Scoppola & Margherita Scoppola, 2016. "Foreign Direct Investments and trade in agriculture: an incomplete contracts approach," FOODSECURE Working papers 49, LEI Wageningen UR.
    20. Issaka Dialga, 2017. "Changing the Africa's impoverishing economic model: Towards a rewarding sustainable specialization model with a new factor of production," Working Papers halshs-01500431, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:38:y:2013:i:3:p:384-394. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.