Amid Tension, China Blocks Vital Exports to Japan

A Chinese fishing trawler crashed into Japanese patrol vessel near islands with disputed ownership. China went into overdrive, suspending high-level diplomatic contact and blocking the export of rare-earth minerals required for high-tech products, including military equipment. The ad hoc administrative shipping ban, rather than a public regulatory procedure, is difficult to protest under World Trade Organization rules, explains Keith Bradsher for the New York Times. China mines more than 90 percent of these minerals; Japan and China are the world’s only processors. Until now, China has refrained using its monopoly as a form of leverage, Bradsher explains. To ensure a steady supply of needed materials, the US and other powers find they must subsidize some industries or find alternative sources. Whether reacting to pressure or not, Japan plans to release the fishing captain. – YaleGlobal