China to restrict export of rare earth elementsJune 25, 2012
Citing environmental concerns, the Chinese government has announced that it will restrict the mining and exportation of rare earth elements, crucial to the manufacture of modern electrical components. China is currently the producer of over 90% of the global market in REEs. Although some claim that this is a ploy by China to prop up REE prices, if it actually increases costs in China, then it should allow other nations to develop their own reserves and enter the market. Although China has a near monopoly in REE production, it holds less than a quarter of known global reserves.