China's Rare Earth Metal Policy: Impact on Domestic Manufacturers and Environmental Concerns

This article analyzes the impact of China's rare earth metal policy on domestic manufacturers and environmental concerns. It discusses the benefits of China's export quota, the need for environmental restrictions, and the search for alternatives by companies like Toyota, Renault, and Tesla.

Global Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Which groups benefitted the most from China imposing an export quota on rare earth
metals Did it give the Chinese domestic manufacturers a significant cost advantage Did it
result in dramatically increased quality and environmental standards........................................3
2. Given that 97 percent of rare earth metal production is now done in China an increase from
27 percent to 97 percent between 1990 and 2010 do you think countries such as Australia
Canada and the United States should reconsider their environmental restrictions on product of
such metals..................................................................................................................................4
3. The restrictions imposed by China on rare earth metals has resulted in some companies e.g.
Toyota Renault Tesla starting to look for alternatives. They plan to use parts that do not
include rare earth metals Is this a good solution.........................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Rare Earth metals are hard to identify and needed better care for the extraction. In this,
there are many company who invest in a manufacturing of different product through using these
rare metal. Here, there are also various International politics includes through using different
policies in different years. China is one of the leading producer and exporter of rare earth metal
and create a high benefit through imposing different policy. In this, there is discussion about
official group from China imposing export quota on rare earth metal (Guo et, al., (2018)). There
is a discussion about environmental restriction for producing rare earth metal and is a good
solution which are used by different organization to restrictions imposed by China.
MAIN BODY
1. Which groups benefitted the most from China imposing an export quota on rare earth metals
Did it give the Chinese domestic manufacturers a significant cost advantage Did it result in
dramatically increased quality and environmental standards
Through imposing and export quota on rare earth metal create a high benefit to the China.
This create cost-effectiveness and due to demand for the manufacturing by the manufacture
company. It provide high cost-benefit for the Chinese extraction and mining companies. This can
be highly effective and provide significant cost advantage for the Chinese domestic
manufacturers. This enable Chinese domestic manufacturer to get the raw material at lower cost
and production is cheaper than the other country manufacturer (Zuo et, al., (2019)). This create a
significant cost advantage for the Chinese domestic manufacturer and provide high benefit
through exporting their finished product in all over the world. It cannot be said effectively that
there is dramatically increased quality and environmental standard. There is no direct impose of
increase quality and environmental standard through creating the cost-effectiveness for the other
country manufacturers. Due to creating cost disadvantage for another country manufacturer
rather than Chinese need to create a high manufacturing cost and in response, it create a costly
product as a finished product (Qin et, al., (2019)). Instead of these, Chinese domestic
manufacturer are making their finished product at lower cost and selling those with high benefit.
This directly provides high economy to Chinese manufacturer that may increase country
economy.

2. Given that 97 percent of rare earth metal production is now done in China an increase from 27
percent to 97 percent between 1990 and 2010 do you think countries such as Australia
Canada and the United States should reconsider their environmental restrictions on product
of such metals
With time, it has been analyzed that there is huge change in the extraction of rare earth
metal in which China has increase their rare earth metal production from 27% to 97% between
year 1990 and 2010. This is highly effective and various country need to consider the
environmental restriction on product of such type of metal which has been produced with the use
of rare earth metal (Omodara et, al., (2019)). In this, there is a need to ensure that for getting high
cost-benefit. China is mining rare earth metals in a higher rate which can lead to create a
negative impact on environment. So, it is highly necessary to ensure that rare earth metal should
not be mine in large amount and to restrict those. There is need to implement some restriction
related with the environment on country. Here, Australia, the United States and Canada need to
reconsider their environmental restriction on the product which are made with the help of rare
earth metal. This can be effective and can provide better environmental awareness and avoid any
type of negative impact on the environment (Kalaitzi et, al., (2018)). There is higher chance that
due to production of rare earth metal in high rated can lead to create a negative impact on
environment which can be observed after many years. Here, through considering the
environmental restriction may help to create some restriction on mining of rare earth metal
production and ensure about better environmental safety. This can have chance to create high
negative impact on environment that can lead to create disaster for humans.
3. The restrictions imposed by China on rare earth metals has resulted in some companies e.g.
Toyota Renault Tesla starting to look for alternatives. They plan to use parts that do not
include rare earth metals Is this a good solution
There is restriction imposed by China on rare earth metal extraction of their own domestic
companies. This created high demand of rare earth metal with the lowering the supply. This lead
to create cost disadvantage for the manufacturing company who use rare earth metal for their
production (Zhang et, al., (2019)). Due to this, there is high impact on various companies like
Tesla, Toyota and Renault who used the finished product of rare earth metal in their automobiles
and they used for their business. Due to cost disadvantage, this lead to create high impact on
their profitability and their production. Due to mass production, this difference creates huge

impact on the business and to overcome from such situation of using high-cost products. They
like to prefer the alternative which can be used to replace the finished product of rare earth metal.
This can be a good solution because due to increasing cost of rare earth metal can lead to
increase cost of finished products. Due to mining on high amount, it can create more negative
impact on environment and can also on different companies who used the finished product of
rare earth metal for their business product. So, it can be said that this is a good solution but not a
permanent solution (Strange, (2020)). So, they need to start for looking for alternative which can
also provide better response then using of rare earth metal. Through this, it can also help the
environment to get settle better and restrict China to reduce the mining of rare earth metal.
CONCLUSION
From above discussion, it can be concluded that there are some rare earth metal that are
highly effective and provide high benefit to different countries. These rare metal are used for
different manufacturing purpose that creates high benefit for the country. There is also need to
ensure that that rare metal business should taken in consideration and settle the policy
inappropriate way which may include China.

REFERENCES
Books and Journals
Guo et, al., (2018). Profit or environment? A system dynamic model analysis of waste electrical
and electronic equipment management system in China. Journal of Cleaner
Production, 194, 34-42.
Kalaitzi et, al., (2018). Supply chain strategies in an era of natural resource
scarcity. International Journal of Operations & Production Management.
Omodara et, al., (2019). Recycling and substitution of light rare earth elements, cerium,
lanthanum, neodymium, and praseodymium from end-of-life applications-A
review. Journal of Cleaner Production, 236, 117573.
Qin et, al., (2019). Vacuum pyrolysis method for reclamation of rare earth elements from
hyperaccumulator Dicranopteris dichotoma grown in contaminated soil. Journal of
Cleaner Production, 229, 480-488.
Strange, (2020). The 2020 Covid-19 pandemic and global value chains. Journal of Industrial and
Business Economics, 47(3), 455-465.
Zhang et, al., (2019). Personal value vs. luxury value: What are Chinese luxury consumers
shopping for when buying luxury fashion goods?. Journal of Retailing and Consumer
Services, 51, 62-71.
Zuo et, al., (2019). Strategic evaluation of recycling high-tech metals from urban mines in China:
An emerging industrial perspective. Journal of Cleaner Production, 208, 697-708.