China expands quotas on rare earth minerals
China is up to some new tricks. At the present time China has a stranglehold over the rare earth minerals market. I have written about this subject in a past post. The BBC is now reporting that the Chinese have expanded their export quotas on the rare earth minerals.
The rare earth minerals are used in everything from TV sets to Ipods. The fact that the Chinese are cutting their exports means that the price of these goods that are manufactured in countries such as Korea, Malaysia, Thailand, and Japan are set to rise.
At this point in time California has not re-opened its rare earth mineral mines, but it will take time to get them established anyway. I have not heard anything new about a possible mine in West Australia.
The down side of this attempt by China to manipulate the market is that it will help to spread the rise of inflation in Western countries as well as in the Middle East and South America.