Abstract Some time ago, the Internet came a small series of setbacks this and other dwarf poor people smile not news, "Saudi Arabia a poor man sent a message on social networking sites, saying he was sick in the hospital alone, no money, No love, no one to see. After the news came out, quickly...
Some time ago, there was a news on the Internet that made Xiaobian’s short-stricken people laugh. “A poor man in Saudi Arabia sent a message on the social networking site saying that he was sick and lying alone in the hospital, no money, no Love, no one to see. After the news came out, it quickly became popular, many rich people rushed to the hospital to visit, and the hospital owner Saudi Prince Avalid also said that he would personally donate 133,000 US dollars to treat the man." Imagine if Xiaobian also sent such a message on WeChat, it is estimated that it can receive a lot of praise...)

The wealth of Saudi Arabia and other Middle Eastern countries comes from the unique oil resources. Not only that, but oil has also been controlled by the Middle East as a weapon to control global politics and the economy. In October 1973, in order to support Egypt, which was defeated in the Fourth Middle East War, against the United States and other Western countries that supported Israel, the Arab oil-producing countries announced an embargo on oil for the United States and the European Union. This move forced the EU to cause a serious impact on the Western economies, triggering the largest global economic crisis after World War II.

In fact, China also has the same material resources as the oil resources in the Middle East, that is, rare earths, because there are “there are oils in the Middle East and rare earths in China.” The rare earths include 15 elements of lanthanides and two lanthanum and lanthanum. Elements, due to their rich electrical, magnetic, thermal properties, and the ability to modify the properties of certain materials, have been crowned with the "treasure of new materials in the 21st century" and "industrial MSG", and even regarded as strategic materials.

At one time, 97% of the world's rare earths were Made in China, and such a "monopoly" status would never have been able to catch up with other resources. Even now, China still has a 70% share. It stands to reason that China should take advantage of this and enjoy favorable political capital. But in fact, neither of these two can be achieved.

For the rare earth weapons in China, countries such as Europe, the United States and Japan have not had no concerns, and China has not used them. In September 2010, Japan detained the captain of a Chinese fishing boat for fishing in the disputed waters. China's response to this is to suspend trading with rare earths in Japan. Then, Japan quickly released the captain of the Chinese fishing boat. In this regard, the New York Times ridiculed, "This is a shameful retreat in Japan."

However, in addition to the so-called "shameful retreat", China did not bargain. Japan has not made concessions on territorial claims and has continued to patrol the disputed waters.

Why is China’s rare earth weapons not as good as the oil weapons in the Middle East? Xiao Bian has found some explanations from several financial articles published by foreign media recently, which can be explained in three aspects.

First of all, China does not really monopolize the rare earth market. Although rare earths produced in China have exaggeratedly reached 97% of the world's level, rare earths are equivalent to Chinese rare earths. But this is China's position by virtue of cheap labor and a blind eye to environmental damage. At the end of the 20th century, Brazil, India, the United States, South Africa and other places were also major exporters of rare earths. Because the rare earth mining process has a relatively large environmental damage, and China's rare earths are cheap and good, other countries naturally do not need to re-exploit. In addition, although the rare earth has a "thin" in its name, the abundance is actually not low. Moreover, China's rare earth reserves account for about 23% of the world's proven reserves, and other countries are not.

Therefore, the "monopoly" status of China's rare earths is popular among countries, and it has cheap rare earths and does not pollute the environment. Obviously, neither the cheap labor nor the destruction of the environment can be tolerated by China for a long time. If one day, China's rare earths are no longer rich and cheap, naturally there are rare earths from Made in American or Made in SouthAfrica. In fact, this day has come. Since the emergence of rare earth supply in China, investors in the United States, Australia and other countries are ready to reopen their rare earth mines, while other investors are looking for rare earth mines in Canada, South Africa and Kazakhstan.

Second, the government’s control over rare earths has been greatly discounted by illegal exploitation and smuggling of exports. An foreign media wrote that what the Chinese government said is often different from what Chinese companies do. For the sake of profit, Chinese companies will try their best to circumvent the ban. According to statistics, some small mineral companies in China sometimes use smuggling networks to illegally export about 20,000 to 30,000 tons of rare earth materials every year. Chinese officials also claim that more than 40% of the rare earth permanent magnet materials supplied by the market are illegal.

Such a huge amount of smuggling, so that the so-called control, quotas are pale. Beijing is strictly speaking that it will formulate more stringent rules. However, Hykawy, the president of Stormcrow Capital, has poured cold water. "China is unlikely to completely eliminate the illegal production of rare earths." He believes that "the ionic rare earth ore in southern China is less difficult to extract and the distribution is relatively fragmented, making small-scale enterprises There is a possibility of survival. Even the existence of these small businesses is tolerated by the local government. Because they are small-scale, simple to operate, and produce valuable products (high profits), you can't even find a way to shut them down completely." In addition, a large number of illegal rare earths come from large, mining companies. These companies have taken many measures to avoid China's export quotas.

Some time ago, the domestic media exposed the punishment of "black rare earth", and the Ministry of Industry and Information Technology and other eight ministries and commissions deployed a six-year special campaign against rare earth violations, reflecting Hykawy's remarks. However, industry experts frankly said that the countries of the black rare earth industry chain have been inexhaustible, and there is a collusion between the government and the business. The fundamental problem of controlling the black rare earth is still a problem to be solved.

Third, the demand characteristics of rare earths are different from oil. Oil is currently the main source of energy in many countries, and the daily consumption is also amazing. With the economic development, the demand for oil is also growing. Then, in countries such as the Middle East, where the oil resources are abundant, it is not difficult to make a fortune. Moreover, the demand for oil has reached a point where many countries feel energy security issues, and to support new energy sources such as photovoltaics, nuclear power and wind energy. It is a pity that these energy sources are not climate-friendly and cannot challenge the dominant position of oil in the short term.

Rare earths are aptly called “industrial MSG”, although the addition of MSG to soups can make them taste as beautiful. Some alloys can increase the performance by adding rare earth elements, and they are not used much in people's daily diet like MSG. . For example, for a car, it only costs one kilogram, and each phone only needs a few grams. Therefore, the effect of the rare earth embargo will take a long time to see the effect, especially if there is still a large amount of rare earth exports.

Moreover, some people don't mind that the soup is less MSG, not even MSG. When the supply of rare earths and prices are unstable, many industries are beginning to reflect on whether it is necessary to use them. Some companies have found that it is not necessary to use high-performance magnets with added rare earths, but the previous use of rare earths is abundant and inexpensive. For example, in China, rare earth resources are abundant, and rare earth magnetic materials are used as electric motors in household appliances. This type of motor is small, consumes less power and performs better. However, those countries where rare earth resources are not abundant use larger motors and consume more electricity, which is also tolerable. Even some companies have spent a lot of effort to study methods that do not use or use rare earth elements. Of course, among them, Japanese companies are the most active and the fastest.

Stones from other hills, can learn. There is still a long way to go before Chinese rare earths have the right to speak.

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