China dependency: It's deja vu' all over again!



By The Political Commentator
February 11, 2011 5:28 am
9 Comments

Has the United States put itself between the proverbial rock and a hard place?

Is the United States beholden to China for critical resources in the same way that we are beholden on countries for oil.

I am going to throw out a term that I have used more than once in the past: rare earth elements or REE and China.

Recap:

October 14, 2010: China isn't just about the money http://politicsandfinance.blogspot.com/ ... money.html

October 21, 2010: Update: China and rare earth elements part deux http://politicsandfinance.blogspot.com/ ... ments.html

December 29, 2010: Rare earth elements and China: Flash back and now flash ahead http://politicsandfinance.blogspot.com/ ... flash.html

January 19, 2011: US/China summit: It's go time http://politicsandfinance.blogspot.com/ ... video.html

January 20, 2011: Tit for tat as Apple Computer is targeted http://politicsandfinance.blogspot.com/ ... er-is.html

The here and now

Ironically China was mentioned just yesterday morning in the context of the United States depending on past enemies, present enemies and pseudo current friends for critical raw materials and cash.

China, in addition to the aforementioned cash is also the worlds primary supplier of rare earth elements that are so critical to the manufacture of our strategic defense weapons and of various consumer goods.

Notice how the word supplier is highlighted. China possesses approximately 35% of known REE reserves yet supplies approximately 96% of the worlds REE needs. The United States has over 13 million metric tons of REE in the ground (U.S. Geological Survey report) but has chosen to outsource the distribution of this critical need to China. http://www.usgs.gov/newsroom/article.asp?ID=2642

This is the same China that threatened to cut off shipments of REE to Japan during the flap over the Japanese holding of a Chinese sea captain.

According to a report from The American Security Project dated February 1st: http://americansecurityproject.org/feat ... -in-china/

"Rare earth metals are essential for the United States' military and economic well-being. Yet, the U.S. has been particularly lax when it comes to securing the supply of these metals.â€