Rare-Earth Exports Show ‘Green’ Economy May Be Communist China’s Saving Grace

China’s state-run Global Times on Wednesday highlighted soaring rare-earth exports as a bright spot in the sputtering Chinese economy, suggesting the international obsession with “green energy” could be the Communist Party’s path to riches and power in the years ahead.

Rare-earth exports were down in March, but they slipped considerably less than most of China’s other profitable exports, dipping to 6.5 percent growth after two months of growing at nearly 11 percent.

The Global Times celebrated these export figures as proof China’s grip on the global rare-earths market remains secure, although it pointed out some obstacles that should not be taken lightly:

According to customs data, China’s rare-earth exports stood at 4,845.2 tons in March, which industry observers said represent “a relatively high level” in terms of monthly trade volume, showing that the trading of the precious metal has not been affected by geopolitical tensions and supply chain snags caused by the COVID-19 pandemic.

The value of first-quarter rare-earth exports in dollar-denominated terms grew 78 percent compared with the same year last year to $244.2 million as prices continued to climb. The figure compared with the 61.8-percent expansion in the January-February period.

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But some industry insiders estimated that the world’s largest rare-earth exporter could see export drops in coming months, as China’s rare-earth production capacity faces obstacles. Major border gates between China and Myanmar— which accounts for about half of China’s rare-earth mineral supply – have been shut down again since the beginning of the year, posing serious challenges for the transfer of raw material supply and further price fluctuations.

Interestingly, the Global Times saw nothing to fear from other countries, including the United States and Australia, ramping up their own rare-earth mining operations to lessen China’s dominance of the market. – READ MORE