China’s rare earth trade analysis

Oana Maria Stanculescu ()
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Oana Maria Stanculescu: Babe?-Bolyai University, Faculty Of Economics And Business Administration, Cluj-Napoca, Romania

THE YEARBOOK OF THE "GH. ZANE" INSTITUTE OF ECONOMIC RESEARCHES, 2011, vol. 20, issue 2, 133-139

Abstract: In current times, eco trend is promoted in all areas, therefore finding alternative energy sources is required. Most modern technology that does not harm the environment is based on different amounts of Dysprosium, Terbium, Neodymium, and so on. Solar panels, wind turbines, hybrid cars and many other electronics such as televisions are using such elements. Respecting the principles of free trade, countries such as Japan or the U.S. imported from China large quantities of rare earth to pursue technological progress. However, quantitative restrictions as export quotas imposed by this country stirred panic in the world, determining Chinese rare earths dependent countries to find other sources of supply, difficult to detect and at higher prices. China's actions are viewed with suspicion globally, because are hiding the true goals that China would like to achieve, among which is to be the main exporter of technology, or to "tempt" largest companies specializing in technology on Chinese territory to be closer of the source of raw material. But is China's trade with rare earths effective and profitable? Will China become in the next 15 years the greatest technological power

Keywords: rare earth; power; technology; trade efficiency; cost effectiveness; terms of trade; quantitative restrictions (search for similar items in EconPapers)
Date: 2011
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