For all the reputation for patience and long-term concentration of Chinese culture, President Xi Jinping and the nation’s leaders in Beijing have recently shown little virtue. They recently criticized the United States, Japan, and especially Australia, threatening to cut off their materials from rare terrestrial Elements. China might have an explanation as to why it feels aggrieved because those 3 countries along with others have recently reached military agreements that are obviously aimed at China. Beijing may also be irritated by U. S. warnings. in position in reaction to the fighting in Ukraine. But still, the industry cuts would seem exaggerated in what rightfully belongs to a diplomatic exchange. More than questions or proportionality, Beijing knows that, in the long run, such moves have never benefited China.
Recent history deserves to have already taught this lesson in Beijing, whether with rare terrestrial elements or any other good. Not only does advertising harassment fail to achieve Beijing’s goals, but these moves are increasingly moving away from Chinese trade, either through sourcing from China. or see it as a horny market. A notable example is Beijing’s effort in 2010 to deny rare land metals to Japan due to the long-running dispute over control of uninhabited islands in the East China Sea, Senkaku in Japanese and Diaoyu Dao in Chinese. Beijing blocked sales to Japanese users after a heated exchange between Japanese navel self-defense force ships and Chinese fishing boats. Japan’s only concession was to reduce the fire in the dispute. other trading nations of China’s unreliability, adding recent warnings from Japan’s ambassador to Australia, Yamagami Shingo.
More recently, Beijing has attempted similar intimidation tactics with Australia. Angered by Australia’s preference to investigate the cause of the Covid-19 pandemic, Beijing has imposed a series of quotas and massive price lists on Australian goods entering China, especially metals, energy and agricultural products. products. Part of that effort included an 80% tariff on Australian barley, a major export for that country. But none of those efforts to punish the Australian economy got what Beijing wanted. the origin of the disease, and Australian manufacturers discovered other markets for their products, also temporarily. Today, with the loss of grain from Ukraine and Russia from global markets, Australian agriculture desires Chinese markets less than ever. The only lasting effect Beijing has achieved on the exchange is to earn Australian enmity and distrust of other trading nations.
Now, in 2022, Beijing has to use infrequent ground shipments to review this failed strategy. Given that China controls about 70-88% of global production, and those elements are vital to much of the fashionable technology, there is little doubt that if China were to put such plans into effect, it would exacerbate the already problematic supply chain problems. But in the long run, such a shutdown would only inspire those primary buyers to move away from China and take with them a lucrative source of industry. lose much of what are now vital industry businesses while gaining more enmity and distrust than those 3 nations.
And there are opportunities for China’s rare earth resources. The fact is that rare earth elements are not very rare. They exist in many parts of the world. The only explanation for why China currently has a near-monopoly is that refining those elements is very destructive to the environment, and richer economies have liked to dump this environmental destruction on China, where, until very recently, there was little concern. the challenge it has threatened, the need for those products will force other nations to replace their priorities. China will lose its existing quasi-monopoly and gain the distrust and enmity of even more nations and do so temporarily in the grand scheme of things. .
Certainly, Washington has succumbed in the afterlife to the temptations of intimidation. But that doesn’t explain why China has stuck to the game. When the United States tried this, it failed, like China, to achieve its goals and unnecessarily attracted the enmity of others. However, because the United States and China delight in this area, policymakers in Beijing would do well to regain their cultural heritage and devote more time to a longer-term vision than in recent times. However, given Beijing’s habit in recent years, China’s leaders are unlikely to be informed of its lesson.