Strategies Of The USA, Japan And South Korea To Deal With The Protection Of China’s Rare Earth Resources

A majority of the high-tech industries and green industries use some form of rareearth materials, which has been coined the name “industrial vitamins”. Lookingforward, with the development of new growth engine industries, it is anticipated toincrease the demand of rare earth materials; with this increase in need also brings anincrease in the global competition for rare earth materials’ market, this is due in partbecause of their rarity in the world.China’s output has captured97%of rare earth materials market in the world andalso is the biggest rare earth materials producer in the world. Meanwhile, China have alack of standardized management and it was caused an disordered competition and alsoit was destroyed the natural environment of rare earth producing area and then chinacouldn’t have price decision right in an international market because of exportcompetition among Chinese firms. Accordingly, Chinese government announced theenhanced regulation policy such as reducing environmental pollution, preventingdisordered development, rare earth materials are being under control, recovering theirprice decision right in an international market and so on. So the major consumers of rareearth resource, such as United State, Japan, South Korea and so on, preparecountermeasure in a hurry. On september7,2010, It was happened collision betweenChinese’s fishing boat and Japan’s patrol boat and then China delayed rear earthmaterials’s export to Japan by using this issue. for that reason, China was criticizedbecause the rare earth materials’s consumer’s think China have weaponized their rareearth materials. The western world was responsive to china’s rare earth materialsprotective policy because rare earth materials are used for making hybrid car, flat screenTV, smart phone, missile, wind power plant. Those are necessary for new growthengines industries and green industries.To begin, this paper with first explain the status of the world rare earth materialsand then shed light on the status of china’s rare earth industry, it will also analyzechina’s enhanced regulation policy toward rare earth materials. Finally, will explore theresponse’s of the United State, Japan and South Korea, three major rare earth materials’s consumer’s, and their take on china’s rare earth materials and industry regulation.