Grift and rare earths
MPs tell us that China has a stranglehold on those essential rare earths:
Last week, Parliament’s Foreign Affairs Committee warned that Britain’s net zero drive has been left dangerously exposed to a reliance on Beijing for supplies of crucial materials.
The committee said in its report: “In the early 2000s, China began to ‘weaponise’ critical minerals exports, restricting access for political leverage.”
Then China announced a ban on the export of rare earth processing technologies.
China has banned exports of technologies for processing rare earths, the latest sign President Xi Jinping’s administration is hitting back against US-led curbs on advanced computer chip sales to Chinese companies.
Therefore, obviously, taxes must be higher so that MPs can lash out more cash to those with long enough ladles to get into the political gravy. A new orgy of industrial development grift.
Except when we examine the details the justification is rather less. For example, the ban on those technology exports was already there, de facto. We’ve also already got a vast development programme under way in this western world:
According to the International Energy Agency, China accounts for about 60 per cent of the world’s rare earth mining production
The thing is, 13 years ago that was 95%. And then China tried to weaponize its control of mining as we said, back in 2010, all that will happen is that western mines will open. As they did to produce that 60% share today.
We already know the truth of this. China’s dominance here is contestable. So, if they’ll not allow us to have those rare earths nice and cheap then we should contest. And the impetus of current pricing is such that it all requires no subsidy whatever. This really is one of those things that markets unadorned can take care of.
So, you know, we should allow markets unadorned to take care of it. However much politics would enjoy the ladling out, the recipients the arrival of gravy, it’s not necessary to tax Peter to subsidise Paul here. So, don’t.