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Rare Earth Elements: A Critical Strategic Resource in Asia
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Journal Article
Rare Earth Elements: A Critical Strategic Resource in Asia
2014
Overview
Rare Earth Elements (REE) are increasingly a critical strategic resource in Asia. These 17 elements are used in the production of most high-tech products from advanced military technology to mobile phones. China currently holds claim to over 90 percent of the world's production. Chinese export reductions in 2012 forced high-tech firms to relocate to China and forced other governments, particularly in the developed world, to pour money into their exploration and production. In 2010, China temporarily halted shipments of REEs to Japan following a diplomatic crisis. In October 2012, after much instability in Sino-Japanese relations, India agreed to start exporting to Japan to support Tokyo's REE-intensive tech industry. Today, greater resource sharing and cooperation between India, South Korea and Japan aim to offset the production monopoly of China. However, with the bulk of production still centered in China, Beijing maintains a significant influence over high-tech manufacturing in Asia. Further diplomatic crises, such as that between China and Japan in 2010, cannot be ruled out. This paper builds on research in the field of critical resources in Asia. It explores regional security vis-à-vis the use of natural resources as an instrument of foreign policy in Asia.
Publisher
Center for Strategic and International Studies (CSIS)
