Saturday, March 17, 2012

China/US Trade War and Rare Earth Metals

There was an article in reuters from Monday about the trade dispute between the US and China over "rare earth metals".  These are used in electronics but also for renewable energy technologies (including generators for wind turbines).  China leads the world in 17 different metals, accounting for 97 percent of world output.

The Obama Administration, the EU, and Japan plan to bring a new WTO trade case against China for their export restrictions on rare earth metals.  Obama is also considering another potential WTO trade case complaining against anti-dumping and countervailing duties China imposed last year on US auto exports.  This was supposedly in retaliation for previous US trading curbs. 

In summary, it sounds like the "coming" trade war is already in full swing.

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