Wednesday, August 17, 2011

Japan and rare earths

The Chinese have been restricting the exports of rare earths for the past 6 months or so, apparently to retaliate against Japanese naval action. These are critical materials in many electronic devices. Japanese high-end magnet manufacturers are starting to move to China to evade the export controls. They are, however, putting their intellectual property at risk. According to the APICS 16 August e-news, an unnamed Japanese trading company official said that China is examining the expertise foreign companies would bring to the country and that “Japan’s technology to produce high-end magnets is a target.” Was this really the original motivation behind the Chinese export controls?

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