I know I’m over half a week late on this (and yes, I’m aware I haven’t blogged well over a week — been crazy around these parts of late), but since I covered the topic earlier this month I thought it was interesting it’s already hit the front pages.
The issue is China essentially controlling the world’s supply of 17 rare earth metals — critical for the manufacture of electronics and military parts, to name two key examples — and how that power might be wielded. I blogged that everyone fretting about Chinese ownership of U.S. Treasuries was completely misplacing their concern. That advice has already been borne out now that China has used that control as a political bludgeon against Japan. I’m betting this is just the opening kickoff of a very serious game of political football. (Couldn’t help the metaphor there, I’m still pretty excited the NFL season is in full swing.)
From the second link:
Sharply raising the stakes in a dispute over Japan’s detention of a Chinese fishing trawler captain, the Chinese government has blocked exports to Japan of a crucial category of minerals used in products like hybrid cars, wind turbines and guided missiles.
Chinese customs officials are halting shipments to Japan of so-called rare earth elements, preventing them from being loading aboard ships at Chinese ports, industry officials said on Thursday.