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

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.