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Implications and Challenges of China’s Supremacy on the Global Rare Earths Market

Author

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  • Ana-Cristina Bâlgăr

    (Institute for World Economy, Romanian Academy)

Abstract

China’s spectacular economic development over the last four decades or so, and its atypical evolution during this process placed the country both at the forefront of the global rare earth trade, and at the centre of international concerns and debates on the implications this ascent has on the regulations governing global trade. Now an uncontested contemporary reality, China’s supremacy on the global rare earth market has fuelled the fears of strongly industrialised countries for the future security of the supply of these raw materials, as a direct result of the extent to which Chinese governmental authorities will from now on choose to comply or not to comply with the international trade rules and practices in force. In these conditions, our article seeks to provide an overview of the evolution of Chinese policies in the field of rare earths, of how they helped transform natural resources endowment into a competitive advantage, and of the recent trends on this global market on which China is the leader.

Suggested Citation

  • Ana-Cristina Bâlgăr, 2021. "Implications and Challenges of China’s Supremacy on the Global Rare Earths Market," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 9(1), pages 55-68, June.
    • Handle: RePEc:ntu:ntugeo:vol9-iss1-55-68
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    References listed on IDEAS

    as
    1. Mancheri, Nabeel A., 2015. "World trade in rare earths, Chinese export restrictions, and implications," Resources Policy, Elsevier, vol. 46(P2), pages 262-271.
    2. Golev, Artem & Scott, Margaretha & Erskine, Peter D. & Ali, Saleem H. & Ballantyne, Grant R., 2014. "Rare earths supply chains: Current status, constraints and opportunities," Resources Policy, Elsevier, vol. 41(C), pages 52-59.
    3. Piermartini, Roberta, 2004. "The role of export taxes in the field of primary commodities," WTO Discussion Papers 4, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Machacek, Erika & Fold, Niels, 2014. "Alternative value chains for rare earths: The Anglo-deposit developers," Resources Policy, Elsevier, vol. 42(C), pages 53-64.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    rare earth; China’s leadership on global rare earth production; rare earth world market;
    All these keywords.

    JEL classification:

    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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