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

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  • 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.

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  • 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
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    References listed on IDEAS

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    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.
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    Cited by:

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    2. 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).
    3. 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).
    4. 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.
    5. 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.
    6. 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).
    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).

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