China has limited the export of rare earth metals, while another in the accumulation of their own strategic reserves. In this case, the U.S. Congress on issues of rare earth in China, a counter motion, reflecting Washington's concerns about this industry is too grave. China's reserves of rare earth for several months, and recently introduced a tax policy may help provide more financial support for the move, analysts say, which is to dominate in Beijing has further tightened the control of a market.
Whether the U.S. should be the starting point of their defense also began to hoard, is the world's response to China's strict control of rare earth is one of the most important issues. Wind turbines used for the production and night-vision goggles magnet polishing glass, rare earth is essential.
Colorado, the new bill is Republican Representative Kaufman Wednesday's press release said that its purpose is to limit the key material on the U.S. China's "dangerous dependence."
But the problem is, if the U.S. government as the buyer directly involved in rare earth, it will bring to this price-sensitive industry, a new and important effect. Over the past year, the impact of factors of rare earth industry in fact all from China. This market has been caught, "Army Regulation 22" type of vicious circle: if the United States to establish reserves is greater demand, so that RE prices higher, and if not establish reserves is also possible as the market worried about supply shortages and price support . The tensions caused by China's export policy has prompted Japan and South Korea importing countries hoarding of rare earth.