Journal
RESOURCES POLICY
Volume 38, Issue 3, Pages 384-394Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.resourpol.2013.05.005
Keywords
Rare earths; Chinese resource policy; Export of raw materials; Mining and environmental pollution
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After top producer China decided in 2010 to tighten its export quotas for rare earth elements (REE), major customers feared being cut off from the valuable metals. The trade dispute intensified when the EU, the USA, and Japan brought the case before the WTO. The export controls raise questions about China's intentions and strategies. This article argues that China's export policy should not be viewed in isolation. The export controls are embedded in a greater transformation of the strategic REE industry. Beijing promotes a broad set of policies, including industry reorganization, resource conservation, and environmental protection. Next, the article examines three narratives that may be constitutive of the Chinese policy. Findings indicate that the geopolitical narrative, which sees natural resources as instruments of power politics, can be only partly attributed to China's REE policies. The major driving motives are domestic concerns for resource conservation and environmental protection, as well as the development of competitive downstream industries. (C) 2013 Elsevier Ltd. All rights reserved.
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