{"id":1148116,"date":"2021-12-23T22:04:56","date_gmt":"2021-12-24T03:04:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1148116"},"modified":"2021-12-23T22:04:58","modified_gmt":"2021-12-24T03:04:58","slug":"china-to-create-rare-earth-behemoth-company-to-stabilize-supply-chain","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/china-to-create-rare-earth-behemoth-company-to-stabilize-supply-chain\/","title":{"rendered":"China to Create Rare Earth \u2018Behemoth\u2019 Company to \u2018Stabilize Supply Chain\u2019"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fchina-to-create-rare-earth-behemoth-company-to-stabilize-supply-chain%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1148116&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p class=\"subheading\"><span>The Chinese government on Wednesday approved a merger of rare earth mineral companies to form what the state propaganda newspaper <\/span><i><span>Global Times<\/span><\/i> <span><a href=\"https:\/\/www.globaltimes.cn\/page\/202112\/1243120.shtml\">described<\/a> as a \u201cbehemoth\u201d corporation, powerful enough to control the global supply chain for the vital minerals.<\/span><\/p>\n<p><span>The new mega-corporation will be directly controlled by the State-owned Assets Supervision and Administration Commission (SASAC), an agency of the Communist government. The company will encompass about 70 percent of China\u2019s rare-earths industry.<\/span><\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p><span>China, in turn, <\/span><a href=\"https:\/\/www.scmp.com\/news\/china\/diplomacy\/article\/3130990\/chinas-dominance-rare-earths-supply-growing-concern-west\"><span>controls<\/span><\/a><span> up to 85 percent of the world\u2019s entire supply of rare earth minerals.<\/span><\/p>\n<p><span>\u201cAfter forming the new company, China\u2019s rare-earth industry will shift from a scattered, small-scale status toward a systematic, comprehensive model,\u201d China Rare Earth Industry Association deputy chief Chen Zhanheng told the <\/span><i><span>Global Times.<\/span><\/i><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">China <a href=\"https:\/\/twitter.com\/hashtag\/RareEarth?src=hash&amp;ref_src=twsrc%5Etfw\">#RareEarth<\/a> Group was formally set up. <a href=\"https:\/\/twitter.com\/hashtag\/China?src=hash&amp;ref_src=twsrc%5Etfw\">#China<\/a>&#8216;s state assets watchdog <a href=\"https:\/\/twitter.com\/hashtag\/SASAC?src=hash&amp;ref_src=twsrc%5Etfw\">#SASAC<\/a> holds 31% of the company\u2019s <a href=\"https:\/\/twitter.com\/hashtag\/stake?src=hash&amp;ref_src=twsrc%5Etfw\">#stake<\/a>: media reports <a href=\"https:\/\/t.co\/AlyYirdGv8\">https:\/\/t.co\/AlyYirdGv8<\/a> <a href=\"https:\/\/t.co\/ZnIuJFFMi3\">pic.twitter.com\/ZnIuJFFMi3<\/a><\/p>\n<p>\u2014 Global Times (@globaltimesnews) <a href=\"https:\/\/twitter.com\/globaltimesnews\/status\/1473830854329835521?ref_src=twsrc%5Etfw\">December 23, 2021<\/a><\/p>\n<\/blockquote>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p><span>An unnamed industry insider said the new company is expected to \u201coptimize resources, ensure supply security and enforce stricter rules relating to production quantity as well as the export volume of rare earths.\u201d<\/span><\/p>\n<p><span>The <\/span><i><span>Global Times <\/span><\/i><span>framed the announcement as a slap in the face to U.S. President Joe Biden, who has <\/span><a href=\"https:\/\/www.foxbusiness.com\/markets\/us-china-rare-earth-elements-biden-energy-plan\"><span>expressed<\/span><\/a><span> concerns about China\u2019s dominance of the rare earth supply chain \u2013 especially given the importance of those metals to wind and solar power and electric cars, products the Biden administration wants to spend vast sums of American taxpayer money on purchasing or subsidizing.<\/span><\/p>\n<div id=\"attachment_19071682\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/12\/GettyImages-1236281069.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-19071682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2021\/12\/GettyImages-1236281069.png\" alt=\"US Vice President Kamala Harris (C) looks at a heavy-duty electric truck as they visit a hangar at John F. Kennedy International Airport in New York On November 1, 2021. - Harris announce USD 127 million in new federal funding for medium- and heavy-duty trucks that produce zero carbon dioxide emissions during an event to combat global warming as the UN climate summit gets underway in Scotland. (Photo by KENA BETANCUR \/ AFP) (Photo by KENA BETANCUR\/AFP via Getty Images)\" width=\"640\" height=\"480\" \/><\/a><\/p>\n<p class=\"wp-caption-text\"><em>Vice President Kamala Harris (C) looks at a heavy-duty electric truck on November 1, 2021. Harris announced $127 million in new federal funding for medium- and heavy-duty trucks that produce zero carbon dioxide emissions. (Photo by KENA BETANCUR\/AFP via Getty Images)<\/em><\/p>\n<\/div>\n<p><span>The <\/span><i><span>Global Times <\/span><\/i><span>hooted with derision at Biden for thinking he could weaken China\u2019s dominant position by making deals with Australian suppliers or belatedly developing American rare earth deposits.&nbsp;<\/span><\/p>\n<p><span>Instead, Chinese analysts said the new corporate behemoth created by Beijing will give China even greater \u201cclout and bargaining power at the bargaining table\u201d and protect China against \u201cWestern bullying attempts.\u201d<\/span><\/p>\n<p><span>The <\/span><i><span>Global Times <\/span><\/i><span>noted rare earth prices soared during the Wuhan coronavirus pandemic due to reduced production, and the huge merger approved by SASAC is likely to drive prices up even further.<\/span><\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p><span>Chinese industry has such high demand for rare earth that China imports even more of the minerals, even after accounting for the lion\u2019s share of the world supply. Political turbulence in Myanmar drove up prices because Myanmar mines are a <\/span><a href=\"https:\/\/www.myanmar-now.org\/en\/news\/myanmar-resumes-trade-of-rare-earth-minerals-with-china\"><span>major exporter<\/span><\/a><span> of the metals to Chinese refineries. Human rights advocates complain that China\u2019s huge purchases of metal are strengthening the military junta that currently rules Myanmar.<\/span><\/p>\n<p><span>Chinese industry sources <a href=\"https:\/\/www.ft.com\/content\/4dc538e8-c53e-41df-82e3-b70a1c5bae0c\">told<\/a> the <\/span><i><span>Financial Times<\/span><\/i> <span>on Thursday that Beijing wants to tighten its control over rare-earths to stabilize their prices, minimizing the risk of \u201cwild price swings that cause headaches for end users.\u201d&nbsp;<\/span><\/p>\n<p><span>The theory is that prices will stop fluctuating so much if there are fewer companies competing with each other to deliver the metals. This will, in turn, make it easier for industries heavily reliant on rare earths to create solid long-term business models and secure investments.<\/span><\/p>\n<p><span>\u201cWe can\u2019t let market force determine how much rare earths should cost given their strategic importance. We can\u2019t let market force determine how much rare earths should cost given their strategic importance,\u201d said the industry source.<\/span><\/p>\n<p><span>Other analysts told the <\/span><i><span>Financial Times <\/span><\/i><span>China has been planning since early in the Trump-era trade war with the United States to undermine American efforts to develop alternative suppliers.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chinese government on Wednesday approved a merger of rare earth mineral companies to form what the state propaganda newspaper Global Times described as a \u201cbehemoth\u201d corporation, powerful enough to &#8230;<\/p>\n","protected":false},"author":41,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1148116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1148116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1148116"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1148116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1148116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1148116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1148116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}