Rare-earth sector moving up industry chain, doesn’t seek monopoly: executive

The global dominance of China’s rare-earth industry reflects expedited moves toward highend manufacturing, rather than a monopoly tactic, said an executive of a leading Chinese rare-earth company.

China’s rare-earth strategy is not aimed at creating a monopoly. The advantages of China’s rare-earth industry in the world are built on domestic companies’ competitiveness, according to Zhao Dianqing, chairman of China Northern Rare Earth (Group) High-Tech Co.

China’s rare-earth industry, which provides more than 80 percent of the world’s total supply, has been considered a key potential countermeasure to the US amid the escalating trade war between the two largest economies in the world.

China’s rare-earth exports to the US have dropped amid the trade war, and European countries and the US are attempting to shake China’s dominance in the area.

Australia has identified 15 rare-earth and critical mineral projects and will cooperate with the US. The UK’s Rainbow Rare Earths said that it plans to raise the output of an African rare-earth mine by nearly 19 times, and it won’t cooperate with Chinese companies.

“China’s rare-earth industry has a complete industry chain, a significant advantage that foreign enterprises can’t surpass in the short term, and foreign companies have much higher exploitation costs,” Zhao said in an interview with the Securities Daily published on Monday.

Rare-earth resources are precious, but given the small consumption, the market is currently oversupplied, Zhao added.

China’s rare-earth industry is transitioning from extensive resource exporting to mediumand high-end refining.