The Gold of Industry and the Core of the Military: China's Rare Earths Strategy and its Implications for Korea

Sohee Park ()
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Sohee Park: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, https://www.kiet.re.kr

No 23-21, Industrial Economic Review from Korea Institute for Industrial Economics and Trade

Abstract: The rare earth elements (REE) refer to 17 metallic elements, including 15 lanthanides and two non-lanthanides. REEs are classified into two broad categories based atomic weight: light rare earth elements (LREEs) and heavy rare earth elements (HREEs). There are seven LREEs, with low atomic numbers and small masses, and 10 HREEs, with high atomic numbers and large masses. Rare earths are strategic materials (core minerals) directly related to resource security, defense, and industrial security. They are used in various industries, including defense, aerospace, information and communications technologies (ICT), artificial intelligence (AI), medical care, new energy, energy conservation, and environmental protection. Deposits of rare earths are concentrated in a handful of countries and regions, and this arrangement has made securing a stable supply of rare earths a key component of national economic competitiveness in the era of economic security. Currently, China is the only country on Earth in which all 17 REEs can be found. Not only does it have the largest proven deposits of rare earths in the world, it is also the largest miner and consumer of rare earths globally. Over the past 60 years, the Chinese government has been pushing the development of the rare earths industry. Two sayings illustrate the importance the government assigns to rare earths: they are “gold of industry” and the “core of the military” (HREEs are used in high-tech weapons manufacturing). China has designated rare earths as national strategic resources and has emphasized the importance of rare earths security. At the same, China has leveraged its rare earths in dealings with major export destinations such as Japan and the United States. In this context, this study aims to understand the development status of the rare earths industry in China. It focuses on the Chinese government’s major rare earths policies, and the implications these measures carry for Korean policy.

Keywords: rare earths; rare earths policy; rare earths industry; strategic resources; economic security; national security; resource security; weapons manufacturing; export controls; trade policy; economic nationalism; China; US; Korea (search for similar items in EconPapers)
JEL-codes: F13 F51 F52 L72 L78 O13 Q34 Q37 Q38 Q56 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2023-08-30
New Economics Papers: this item is included in nep-cna, nep-ene, nep-ict and nep-inv
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