Corporate Japan adjusts quickly to a shortage of rare earths
TWO decades of economic impotence have convinced many observers that Japan is cautious and slow to change. But the country can move quickly when sufficiently provoked. China is hoarding rare earths—17 elements that, although plentiful in nature, are costly and time-consuming to extract and have highly toxic by-products. Four months ago, during a minor territorial dispute, China was accused of suspending shipments of these elements to Japan entirely. Since then, Japan Inc has sprung into action.
Rare earths are used in high-tech products from computer chips and televisions to cars and missiles. China has one-third of the world’s reserves but accounts for 97% of current production, having squeezed out other suppliers with low prices in the 1990s. It is restricting exports to induce foreign technology firms to place operations inside China. The quota for January to June this year was cut by 35%. …
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