New RSIS analysis reveals how China calibrates rare earth export controls as strategic leverage without triggering full supply chain decoupling. (read full article...)
China’s Rare Earth Leverage: Power, Precision, and the Risk of Overreach
- Thread starter DOC
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Fundamental
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As with most Macro Strategies, there is eventually an unseen cost, when reality catches up to your initial plans. China went on a State subsidised 'building campaign' for over a decade, only to find they have overshot and now have an apartment and retail outlet glut that necessitates a severe retraction in building and prices. The Chinese States strategy to dominate the global manufacturing industry, in part thru subsidising its Rare Earth Monopoly for the last 20+ years, is now slowly starting to unravel. Donald's initial response of a 'floor price' for MP has not only encouraged the Western industry to get off their backsides, but it has also prompted the various Myanmar fractions to question "Why should we be selling our minerals to China, when we can get a much better price from the West?". China now finds itself having to offer much higher prices for any RE imports, or risk losing its Political and Economic leverage with Client States. Lesson learnt ? not yet.