Japan and the US are to take further measures against China's rare earths.
According to Kyodo News, the Japanese and US governments have decided on a strategy to sign a trade agreement action plan (action plan) aimed at expanding the procurement of important minerals during the summit meeting between Prime Minister Asahina Hayana and President Trump on the 19th.
The plan also includes measures such as increasing the regulation of exports of rare earths (rare earth elements) to China in order to reduce dependence on China, which is exacerbating economic "coercion," and imposing additional tariffs on important minerals produced in China. The trade agreement aims to be implemented through the framework of the Group of Seven (G7) and voluntary countries, led by Japan and the US. A diplomatic source revealed this on the 14th.
The action plan will clearly outline policy measures that help diversify procurement sources. To prevent important minerals from China from flowing too much, additional tariffs will be imposed, while subsidies will be used to promote investment and production expansion in regions outside of China. Chinese companies can supply rare earth products at low prices due to low wages and relaxed environmental regulations, and the price gap with non-Chinese products has become an issue.
China accounts for about 70% of the production of rare earths, and more than 90% in refining. In response, the G7 is accelerating the strengthening of the supply chain for important minerals. The Office of the US Trade Representative (USTR) is at the center of the initiative, envisioning a trade agreement with voluntary countries including Australia.
Original: toutiao.com/article/1859626003607680/
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