China, which has been blocking shipments of crucial minerals to Japan for the last month, has now quietly halted some shipments of those materials to the United States and Europe, three industry officials said this week.
The signals of a tougher Chinese trade stance come after American trade officials announced on Friday that they would investigate whether China was violating World Trade Organization rules by subsidizing its clean energy exports and limiting clean energy imports. The inquiry includes whether China’s steady reductions in rare earth export quotas since 2005, along with steep export taxes on rare earths, are illegal attempts to force multinational companies to produce more of their high-technology goods in China.
Despite a widely confirmed suspension of rare earth shipments from China to Japan, now nearly a month old, Beijing has continued to deny that any embargo exists.
Industry executives and analysts have interpreted that official denial as a way to wield an undeclared trade weapon without creating a policy trail that could make it easier for other countries to bring a case against China at the World Trade Organization.rest of story here: NYT on Rare Earth
Finding ways to play the rare earth sector is difficult, one could look at Molycorp (MCP), General Moly (GMO), or Thomson Creek Metals (TC).
I am nervous on MCP due to the run-up it has had and the fact that their mountain pass mine will not begin production until 2012 (many a slip twixt cup and lip). Like TC, but it has languished and have to learn more about GMO - would appreciate any feedback on the name.
No comments:
Post a Comment