Things are calming down now that muscle has been flexed, but as you see here the issue was/is an issue. Why, of all the political and/or export pressures available was a little known product called rare earth raised, because right now with no other serious suppliers it would severely impede the targets countries export revenues, immediately.
China?s Ban on Selling Rare Earth Minerals to Japan Continues By KEITH BRADSHER and EDWARD WONG http://www.nytimes.com/2010/10/11/business/global/11rare.html?src=busln
HONG KONG ? Chinese customs officials continued to prohibit all exports of rare earth minerals to Japan over the weekend, industry officials said, but the Chinese government showed signs of taking a more conciliatory stance toward Japan. The last one of four employees of a Japanese construction company who were detained on Sept. 23 near a Chinese military area returned to Japan on Sunday. All four had been taken into custody during a dispute over a Chinese fishing boat captain whose vessel collided with two Japanese patrol boats on one night near islands Japan controls but China claims. Japan detained the captain on Sept. 8 and released him on Sept. 24. Prime Minister Wen Jiabao of China told European political and business leaders Wednesday that China had not imposed any bans on exports of industrial minerals for political purposes and that it did not intend to stop exports in the future. Rare earth minerals are used in the manufacture of hybrid gasoline-electric cars, computer screens, large wind turbines and in many other applications. Mr. Wen spoke at a China-European Union business meeting in Brussels. Chinese officials have consistently taken the position that they have not imposed any regulations preventing exportation of rare earth minerals; any such regulations could be easily challenged at the World Trade Organization. The commerce minister, Chen Deming, suggested instead in a television interview on Sept. 26 that Chinese entrepreneurs in the rare earth industry might have halted shipments because of their own feelings toward Japan. Thirty-two companies in China have export licenses for rare earth minerals, and 10 of them are foreign. Mr. Deming did not address why the 10 foreign companies would have strong feelings toward Japan, or why all companies in the Chinese industry halted shipments on the same day, Sept. 21. Throughout the halt on exports of rare earth minerals, China has allowed exports of manufactured products that use them, like powerful magnets, and highly purified rare earth metals. Japan is the largest importer of rare earth minerals and ores. Japanese companies use them to make a wide range of technology products and have been reluctant to import manufactured goods from China instead. Even before questions arose over the exports to Japan in late September, China had been tightening caps on rare earth exports for five years. When the export halt was imposed, the quota for 2010 was within a month and a half of being exhausted. But shipments could continue into November if customs officials allow a resumption soon. Edward Wong reported from Beijing and Keith Bradsher from Hong Kong. A version of this article appeared in print on October 11, 2010, on page B6 of the New York edition.
LYC Price at posting:
$1.56 Sentiment: LT Buy Disclosure: Held
