The Smiling, Reasonable Face of Mendacity
There has recently been a bit of a brouhaha over the so-called “rare earth metals,” China’s control of them, and fears that they may restrict supplies to the rest of the world. Before I get to what I really want to talk about, I want to say that the name “rare earth metal” is a terrible one. These minerals are only rare in comparison to other minerals, like iron and the like. There are actually quite a large amount of them lying around. The real trouble with them is that they are somewhat more difficult to mine and refine than other minerals, requiring a large amount of technical know-how and specialized equipment. Currently China leads the world in this know-how and equipment, which is why they produce over 90% of the world’s supply. They certainly don’t have 90% of the world’s reserves, so panic over their current dominance of the market is unnecessary.
But this is not my main point. This mini-crisis has given me an excellent chance to show you guys what real propaganda looks like. This is an editorial from the China Daily, the major English-language newspaper here, and a notorious shill for the government. I want to guys to remember this when you are next thinking about complaining about bias/propaganda/encroaching fascism in America.
Rare As It Is (LINK) (article text is in regular font, my comment are smaller and in italics)
Attempts by some rich countries to challenge China's decision to enhance control and regulation over rare earth minerals is the latest evidence of astounding unfairness in the current global economic and trade order.
If the world economy is to embrace a sustainable recovery, no country should stand in the way of China properly pricing resources as scarce as rare earths.
What they’re really saying is, “How dare you complain that the government sets a price, and not the free market?” Classic communist sentiment. Note them trying to claim rare earths are actually rare.
The Chinese government made it clear again on Thursday that it will not use its current dominance of global rare earth supplies as a bargaining tool. Such an official statement is meant to ease unjustified international concerns that China may be using its rare earth exports as an economic and political lever.
I love this paragraph. I love the outrage. The author cannot believe that an assurance by the Chinese government that it won’t use these metals politically (which it has already done and will do again) hasn’t put out these fires. The temerity of the rest of the world! The gall!
China enjoyed little appreciation over the past two decades when it was burdened with the world's demand for the 17 elements called rare earths. With about one third of the world's total reserves, China has satisfied more than 90 percent of the world's need for rare earth elements at such an abnormally low price that it belied the name.
Yet, even more absurd, while other countries of large reserves like the United States have contributed virtually nothing to global supply in the past decade, they are demanding China, the largest producer of the elements, to keep exporting with little say over the price and quantity of exports.
Oh China, thank you for your benevolence. You have selflessly sacrificed your own profit margins to keep the rest of the world supplied cheaply. How can we EVER thank you? But what’s really funny is how the author acts like China wants America to exploit its own reserves, and thus seriously reduce China’s market share.
It is no secret that regulatory problems in the domestic industry must have contributed to this abnormal trade.
Hence, when China decided to strengthen its regulatory measures on the exploration, production and export of rare earths in line with international practice and WTO rules, those import countries that have benefited from China's cheap export of rare earth materials for a long time should not be too surprised.
China will always cite some sort of vague “international practices” to justify their actions. Their favorite is to claim that “UN resolutions” support them. Yes, that would be the same UN that appoints Libya to chair a human-rights commission, and gives equal votes to countries that respect human life, and to North Korea.
Given the severe environmental problems associated with their exploration, as well as their increasing value as essential elements in new energy technologies, it is all too natural that rare earths will become much dearer than before.
While China retains its position as the largest exporter of rare earth materials, no one should expect the country to continue to meet most of the world's demand, because that is simply unsustainable given that it has only one third of the world's reserves.
Besides, if the international community is really serious about sustainable development, China's efforts to exercise control and regulation over its rare earth industry should be a welcome step.
The long-term benefit of pricing resources appropriately is far more important to sustainable development around the world than the short-term gains that importers can reap from cheap rare earth elements.
But international efforts to fix the global economic and trade order in line with a sustainable future, unfortunately, remain rare.
Again, what he’s basically saying here is “fuck the free market, we do what we want!” The prices are what they are. If rare earths are priced too low, the price will float up naturally. And this is what really scares me. He talks about price controls like they are simply standard business practice, when they are not. They are economically ruinous for everyone involved. Ask any hard-line communist country how well they work. Oh wait, you can’t, they ALL FAILED MISERABLY!!! Only in our modern world, if China’s economy were to fail, it would drag all of us down with it. But who cares about that, the author says, the Chinese Governemnt gets to do whatever they want.
Well argued, seemingly reasonable, and 100% wrong. Nothing but a cover for the Chinese government’s desire to maintain a tight grip on a tool they can use to browbeat other countries into submission. But the article does contain one bit of truth: America and other countries with reserves need to start mining. Now.
P.S. Why aren't we already mining? The answer is, of course, environmentalists. They have slapped so many regulations on our domestic rare earth mining industry that Chinese suppliers are able to charge orders of magnitude less. There is simply no way at all for US mining companies to compete with China in this market environment. Thanks, Greenpeace!