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Rare and Foolish

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Krugman cites the near monopoly of rare earth materials by China, and the embargo on export to Japan, as an irresponsible exercize of economic power by China. These materials are used in many high-tech devices.The monopoly itself was a result of the US neglecting its production of these materials in the US. In one case, he says, the US allowed the Chinese to literally pack up all the equpment of a US factory and ship it to China. Low wages and lax environmental standards helped China to price below the U.S. industry, leading to its shutdown.

China's rare earth materials monopoly and quotas

10/17/2010

Grouped Articles

Rare and Foolish

New York Times 10/17/2010

China Cuts Export Quota on Rare-Earth Metals

Wall Street Journal 12/29/2010

China Revamps Rare-Earth Exports

Wall Street Journal 12/28/2011


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