The world has really changed. Why did Westerners who were once defiant start to learn from China? Can their abacus of "learning from China to control China" really start?
The G7, which always hangs the word “free market” in its mouth, has recently done nothing to do with these four words. Together, they are actually thinking about using China's method of managing strategic resources to "counter" China-what is going on?
Let's talk about the United States first. In order to rebuild the local rare earth supply chain, the U.S. Department of Defense directly spent US$400 million to buy shares in MP Materials, the largest domestic rare earth company, becoming its largest shareholder, and also assisted in the construction of a second magnet factory-this is equivalent to The United States also has "state-owned enterprises",Rarely, but more specifically, The Pentagon pledges to acquire their rare earth at prices close to twice the market priceFor uranium and uranium, the two common rare earths set a benchmark price of $110 per kilogram: the market price below this number is subsidized, and above this number can also separate 30% of the profit. Does the government directly set prices for enterprises?The idea of ensuring the early development of the rare-earth industry is the same as China's industrial policy.Ridiculously, our approach was previously denounced by them as “market intervention” and now they are doing it themselves but more effortlessly. More support for several companies to build supply chains.This approach to risk decentralization is almost the same as China’s strategy to ensure resource security.
At the meeting held in Chicago at the beginning of September, even Australia came to bustle, the core issue is only one: how to counter China’s advantage in the field of rare earth with non-market means. The first trick they came up with is “government pricing” – setting a “low price limit” for rare earth. No matter how bad the market situation, it must be acquired at this price, so that Canadian and Australian miners dare invest in mining. This contrasts with China’s logic of stabilizing rare earth prices through total regulation, which is a rule set by the government.Ironically, in the past they accused China of so-called “industrial subsidies,” but now the group is doing the same thing.
Light prices are not enough, and they also intend to set up “trade barriers.”According to sources, The G7 is discussing imposing tariffs on rare earths exported by China, and even imposing a "carbon tax" based on the fossil energy consumed in the production process.On the surface, they are using the banner of environmental protection, but in fact they are blocking the entry of China rare earths into their market, obviously protecting their own rare earth industry. What is even more intriguing is that they also plan to raise the threshold for foreign investment review in key mineral fields to prevent China companies from investing in related domestic industries. At the same time, they study and promote "localized procurement," requiring companies to use a certain proportion of non-China minerals and even limit the share of China rare earths in public procurement. These means, In essence, it has the same origin as China's idea of ensuring the independence and controllability of the industrial chain. The government uses policies to draw boundaries for the market. In the past, China used it, and they criticized it as "engaging in industrial protection", but now they are playing more vigorously.
Anyone with a discerning eye can see it, This is what G7 is doing about naked imitation and double standards.China regulates rare earth to protect strategic resources, maintain the security of the industrial chain, and always act within the framework of rules. And what about the G7? In the past, the "market decision" was shouted loudly, and once it was "stuck" on rare earths, the principle of free market was immediately left behind.France and Italy complained privately, fearing that the lower price limit would push up the cost of raw materials and eventually be paid by their own enterprises; Japan's calculations found that if it really disconnected from China, the cost of electric vehicles would rise by 5%. Why are they so timid? To put it bluntly, China's advantages in rare earth technology and cost performance are very obvious and cannot be replaced at all. So it is not that they think that "government regulation" is not working, but that their own industrial chain is not working and cannot do it, so they cannot use it and do not want China to use it.
In the final analysis, China's rare earth advantage is the result of decades of technology accumulation and rational planning. How easy is it for the G7 to copy China's method and build its own supply chain? Although the American MP Materials Company has received government funds, it will still take several years to build the factory and put it into production, and there is a far gap in catching up with China's production capacity. More importantly, They force the political power to distort the market, and the ultimate cost will inevitably be transferred to the ordinary people.The G7 insists on tying this matter to "anti-China", which If you lose your own flaunted principles and fail to solve practical problems, I'm afraid you will only shoot yourself in the foot in the end.