The Chinese government has introduced a slew of new measures designed to tighten its grip on lucrative natural resources used in everything from electric cars to wind turbines. In a list released by the country's State Council on Saturday, Beijing declared that rare earth metals are the property of the state and warned "no organization or person may encroach on or destroy rare-earth resources." From Oct. 1, when the rules come into force, the government will operate a rare earth traceability database to ensure it can control the extraction, use and export of the metals. China currently produces around 60 percent of the world's rare earth metals, and is the origin of around 90 percent of refined rare earths on the market. Advertisement
Beijing has already prohibited exports of rare earth refining and magnet manufacturing technologies. In January, it banned the export of gallium and germanium, both highly sought after by the computer-chip industry. Fears that China is looking to exert control over the industry, and could disrupt critical technology, automotive and renewable energy supply chains, have sparked a race to shore up supplies from alternative suppliers. Both the U.S. and the EU have launched efforts to procure rare earths at home and abroad, including in Vietnam, Brazil and Australia. A year ago, European Commission President Ursula von der Leyen announced construction of the first large-scale rare earth refinery outside of Asia, located in Estonia. She said the move would "bolster European resilience and security of supply."
A 2022 analysis from the European Parliament warned that over-reliance on monopolistic suppliers was a major risk for Europe. "The EU imports 93 percent of its magnesium from China, 98 percent of its borate from Turkey, and 85 percent of its niobium from Brazil. Russia produces 40 percent of the world's palladium," it said. "The latter is a reminder of the strategic implications of the Russian invasion of Ukraine, and the need for the EU to prepare for an increasingly uncertain world."
The EU has launched a probe into anti-competitive trading allegations against the Chinese electric vehicle market, which benefits from heavy government subsidies and preferential access to essential rare earth metals. Earlier this month, the two sides agreed they would host consultations in order to try and resolve the standoff.
That last paragraph really is so damning. It is admitting the superiority of China’s central planning and how it is being used to actually improve society. ”But at what cost?”
Well, apparently the cost is that shares of China’s largest rare earth mineral mining firm have gone up 5% since the announcement. China proving socialists right every single day and absolutely crushing the capitalist development speedrun challenge. It’s genuinely hilarious that the development plan of China runs basically like what I’ll describe below, and capitalist nations are just completely incapable of stopping it from happening because the power of capital is greater than the power of their states.
“hmmm yes, today I will invest in the Chinese rare earth mineral market. Since China controls 90% of global production and all of the infrastructure is in place, all I have to do is bring my money, tech, and expertise with me and I’ll carve myself some serious profit! Easy money!”
“Ahh yes thank you for the help developing our mining industry/technology Mr. Foreign Capital. We appreciate your business and you had a great run, but unfortunately for you we have nationalized your mineral resources. The extractive capitalism will now stop. Feel free to reinvest elsewhere or compete with us on the global market tho :)”
”China is nationalizing its rare earth minerals, but at what cost? We need to ban China from–“
”Wait omg is that another investment opportunity in China where I can bring in my capital/technology/expertise to make some money? Hell yeah, where do I sign?”
Rinse and repeat
I don't like the turn to neoliberalism of China one bit either but it seems to be working out now that the imperialists have fallen for it and lost all their means of production through capitalist means to China. If it weren't for Dengism maybe China today would be just like Russia, a sad ruin of something that used to be great, but it's not. It seems to be reaching a turning point and slowly giving capitalists the boot.
I guess something similar would be the bourgeois revolutions that ended feudalism and the French Commune which got crushed because material conditions for socialism were far from ready. Capitalism is shit but it was necessary to get us to the point that proletarian revolutions were possible and led to the not so short lived success of the USSR.
We can't ignore the reasons that USSR was defeated though, it was because of strategic failures and the backtrack by giving in to capitalist measures but also because of being surrounded by hungry wolves in the West.
Dengism seems to postpone the revolution until imperialist's capital is stolen to the point that they are much less of a power to be reckoned with when revolution happens. If strict ML socialism is implemented at a point like this, it will probably be extremely more likely to defend itself and support global socialism until the US itself is also socialist.
This is still progressing and only time will really tell if Deng was a genius revolutionary or a traitor. I'm really hoping it's the first, it would mean that wherever you are, socialism might be coming soon enough to see it in our lifetimes.
Morally it sucks but this is what material dialectisism teaches in part, morals aren't the driving factor of history, only material conditions and relations of production are.
This is a perfectly fine point and its not what I'm arguing about. You can say Dengism does crucial important things while still recognizing the current mistakes and hypocrisy. They're not mutually exclusive.
Sadly people seem to very much want to have blind hope the same hypocritical dengism approach wont lead to even more crucial mistakes in the future. Its fine to hope for that, but not admitting their currently obvious flaws is just wrong imo.