Everyone knows by know how China controls 80% or 90% of rare earth processing, but as you point out they consume internally 80% of that.
The funniest thing is the Trade War™ offered a perfect opportunity to further tighten the export controls of rare earths, which is what China wanted anyway, to satisfy the domestic consumption.
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☆ Yσɠƚԋσʂ ☆ - 3w
lol exactly, the US provided a politically expedient reason for China to take more rare earths off the market
4
davel - 4w
This is the good shit right here. I haven’t seen anyone else tying it all together like this and bringing receipts.
8
☆ Yσɠƚԋσʂ ☆ - 3w
Thanks, the connection between domestic rare earth consumption and the move up to the top of the supply chain is kind of obvious in retrospect. It is surprising more people haven't made the connection.
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darkernations - 3w
Excellent article. Well done and thank you
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☆ Yσɠƚԋσʂ ☆ - 3w
Thanks, I'm surprised I haven't seen more people highlight the fact that China now having vertically integrated supply chains means they have little reason to ship rare earth out.
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darkernations - 3w
You're right - even from a liberal perspective it is difficult to understand why this is not widely grasped in the West, vertical integration has long been understood to reduce transaction costs and anarchy of the market (though they would phrase it differently).
yogthos in economics
How China’s Climb up the Value Chain Changed Everything
https://dialecticaldispatches.substack.com/p/the-bifurcated-marketEveryone knows by know how China controls 80% or 90% of rare earth processing, but as you point out they consume internally 80% of that.
The funniest thing is the Trade War™ offered a perfect opportunity to further tighten the export controls of rare earths, which is what China wanted anyway, to satisfy the domestic consumption.
lol exactly, the US provided a politically expedient reason for China to take more rare earths off the market
This is the good shit right here. I haven’t seen anyone else tying it all together like this and bringing receipts.
Thanks, the connection between domestic rare earth consumption and the move up to the top of the supply chain is kind of obvious in retrospect. It is surprising more people haven't made the connection.
Excellent article. Well done and thank you
Thanks, I'm surprised I haven't seen more people highlight the fact that China now having vertically integrated supply chains means they have little reason to ship rare earth out.
You're right - even from a liberal perspective it is difficult to understand why this is not widely grasped in the West, vertical integration has long been understood to reduce transaction costs and anarchy of the market (though they would phrase it differently).
Well written.
indeed, and thanks!