- cross-posted to:
- worldnews@lemmy.ml
- cross-posted to:
- worldnews@lemmy.ml
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That’s not a problem I’ll just go ask one of my historical trade partnohnoholyfuckwhatdidijustdo.
Never fight a trade war
on two frontsagainst every country simultaneously.In the wise words of Londo Mollari
Only an idiot fights a war on two fronts. Only the heir to the throne of the kingdom of idiots would fight a war on twelve fronts.
he is repeating history, starting trade wars to trigger world war.
The MIC already worked a solution since last time China restricted exports; both Cali and Australia would pick up production.
The problem with rare earth isn’t that it’s rare, it’s that they only exist in low concentrations, and the total lack of labor and environmental laws in China means that there is no room for external competitors to compete on price… Our modern neoliberal governments refuse to do anything that does not enrich or empower the oligarchy; not even for “national security”.
Unfortunately, this means Australia might have just jumped to the top of the nazi parties annexation list.
The “cheap Chinese labor and lax laws” thing is not exactly the issue, at least not these days. The thing is that Chinese industry has spent decades working out how to refine these minerals, and they’re the only ones who are now able to do it at scale. So other countries that extract and process rare earths (which as noted aren’t actually that rare) often ship semi-processed ore to China for final processing.
Sure, other countries can replicate these capabilities if they’re willing to put in the effort. It’s like China’s challenge with EUV lithography, but in reverse. It will take significant time. Also, building up a rare earths processing industry probably involves not just spending capital, but also major environmental risks while you’re doing your trials.
Yup, it is processing of the ores that china is good at. Rare earth is not that rare.