Thursday, October 7, 2010

Rare Earth Issue Continues

China is now saying that they will not block the export of the rare earth elements used extensively in modern electronics, per China Daily.

They state:

China has not, and will not block exports of rare earth, Premier Wen Jiabao told European political and business leaders in a keynote speech at the Sixth China-EU Business Summit on Wednesday."China is not using rare earth as a bargaining chip," Wen said. "We aim for the world's sustainable development."

It continues:

Wen called for proper controls and regulations for the precious minerals and metals that can be used for electronic devices, but said that China will not close the market. "It is necessary to exercise management and control over the rare earth industry, but there won't be any embargo," he said. "What we pursue is to satisfy not only domestic demand but also the global demand for rare earth. We should not only stand from the present, but should also look forward to the future," he added."If the rare earth minerals were used up, how would the world and China deal with the problem?"

Wen, a geology major in college, said he studied rare earth for years. In the 1980s and 1990s, rare earth metals from China were exported at low prices due to a lack of proper management and extraction technology, as well as chaos in supervision, Wen said. Some countries accumulated so much rare earth that they are still using those reserves today, he said.He also assured European investors that China would maintain a good investment environment for foreign businesses.

This issue has not ended, it was tested and it has legs.