World trade in rare earths, Chinese export restrictions, and implications

Export restrictions on metals and mineral products have been broadly applied by many countries with a view to securing domestic supply and addressing resource depletion. Export restrictions are designed to meet diverse policy objectives ranging from environmental protection and increasing fiscal revenue to the development of processing sectors. The global dependency on China for raw materials (particularly rare earth elements) is a contentious issue, as China imposes a number of restrictions on the export of these minerals. This study uses the case of rare earth elements to evaluate Chinese export restrictions, reviewing China's current monopoly over the industry and providing insights on how widely traded these minerals are and China's position in international trade in terms of both volume and value. The study investigates the various trade restrictions imposed by China and their implications, including the availability of materials to industrialized countries. •Global rare earth minerals trade and China's trade volume/value are evaluated.•China's export restrictions on such minerals and their effects are studied.•No evidence exists that China's restrictions had desired effects on production.•Rare earth minerals are a major factor of China's industrial growth.