The WIKILEAKS Public Library of US Diplomacy (PlusD) holds the world's largest searchable collection of United States confidential, or formerly confidential, diplomatic communications. As of April 8, 2013 it holds 2 million records comprising approximately 1 billion words. The collection covers US involvements in, and diplomatic or intelligence reporting on, every country on earth. It is the single most significant body of geopolitical material ever published. The PlusD collection, built and curated by WikiLeaks, is updated from a variety of sources, including leaks, documents released under the Freedom of Information Act (FOIA) and documents released by the US State Department systematic declassification review.
An August 10, 2009 cable from the US Embassy in Canberra, Australia, reveals the serious concerns of the US officials for the absolute dominance of China in the rare earths global market, which involves materials critical for modern technologies. The cable also reveals concerns for the potential penetration of the Chinese state industry in the rare earths Australian market.
Most important parts [emphasis added]:
State-owned company China Non-Ferrous Metal Mining Corporation is seeking to buy a controlling stake in Australian rare earth company Lynas, which manages one of only two globally significant projects outside of China. The Foreign Investment Review Board extended its review of the proposal, given that China already controls 97% of global rare earths supply.
Lynas was positioning itself as an alternative supplier to
Chinese companies before the global financial crisis. But financing
difficulties forced the company to turn to foreign investors for
funding in order to complete construction of the Mount Weld project.
CNMC plans to invest an initial A$252 million to bring the mine
into production by 2010. The financing plan involves Chinese banks
and would give CNMC a 51.6% stake in Lynas. Lynas' existing 5-year
contracts cover 75% of its first-stage output and 25% of its
second-stage output with customers in the US, Europe and Japan. A
change in ownership, however, could affect the direction of future
sales.
About 97% of global production of a collection of elements called rare earths -- essential ingredients in advanced weaponry, fighter jets and radar equipment -- takes place in China. Chinese control of the global supply of rare earths means that the Chinese government could influence access to supply. Concerns in the U.S. over security for the supply of these minerals prompted the filing of a WTO case against China in June 2009 for imposing export quotas on rare earths, as well as a bill currently before Congress, which would require a report, to be completed by next year, on the strategic significance of the minerals for the U.S.
In early July 2009 Australia's Foreign Investment Review Board (FIRB) asked CNMC to withdraw and resubmit its application, starting a new 30-day review process. If approved by the FIRB, Lynas would convene a shareholder meeting in September 2009 to approve the CNMC transaction. In the local press, academic and mining industry experts have warned recently about the danger of facilitating even more control over rare earths to China.
Another August 28, 2009 cable reveals that the US had serious concerns about the fact that China was seeking to control its rare earths exports, which could seriously impact the increasing needs of the US companies on metals critical for hybrid and electric cars.
Most important parts [emphasis added]:
China's Ministry of Industry and Information Technology (MIIT) has drafted a report recommending more stringent restrictions on the export of rare earth metals and further consolidation in the rare earth mining sector over the next six years, according to Chinese media. Some industry analysts fear the restrictions on metals critical for hybrid and electric cars and energy efficient light bulb production will lead to shortages and higher prices for green technology products. China supplies 87 percent of the global rare earth market, and Chinese firms continue to seek additional rare earth assets in Australia.
According to Chinese media reports, MIIT's draft "Special Plan for the Development of the Rare Earth Industry 2009 Q 2015," recommends lowering China's current rare earth export quota of 35,000 tons per year, although the extent of the reduction is unclear. Certain rare earth metals--such as terbium, dysprosium, yttrium, thulium and lutetium-- will reportedly face complete export bans. According to industry sources, dysprosium is a critical component in the electrical systems for hybrid and electric cars; terbium and yttrium are used in energy efficient light bulbs. Limiting or eliminating the export of these raw materials may lead to shortages and higher prices for green technology products.
Given the importance of rare earth resources in the manufacture of energy efficiency goods and consumer products such as plasma and LCD televisions, China last year issued a series of measures designed to limit the export of these resources and increase oversight of the rare earth mining sector. MOFCOM, for example, reduced the number of approved rare earth exporters from 39 firms to only 20; China previously had 200 rare earth export enterprises. China also imposed a 35,000 ton per year export quota and raised export tariffs.
Peking University Professor Xu Guangxian, China's "father of rare earth," has called for the government to set up a rare earth strategic reserve. He expects prices to rise dramatically given increasing demand and limited supplies. According to the China Mining Federation, China currently supplies 87 percent of the international rare earth market.
Since the end of WWII, the US imperialists and their Western allies were constantly seeking to control global oil production, directing it to their territories to meet their increasing needs.
Yet, it has been made clear that at least the last decades, the US empire conducts wars, orchestrates coups, seeks regime change in various countries, in order to control the rich sources of other various minerals which are critical for high-technology production, on behalf of the US companies.
Such cases are the invasion of Afghanistan, the coup against Evo Morales in Bolivia, etc.
The US has turned against China more aggressively the last two decades because it seriously threatens its global sovereignty, mostly in the economic field. The US imperialists seek to weaken China, not only because it threatens its global domination, but because China may become an example of a more successful model against the failed free-market neoliberalism. And this is the last thing the US big corporations would want to see.
Yet, these cables reveal another serious reason for which the US imperialists desperately seek to destroy the Chinese model. It's the fact that critical sectors, like the rare earths, are being widely controlled by state-owned companies. This means that it's very difficult for the big private corporations of the West to penetrate China and loot these sectors for their own, exclusive benefit.
The US imperialists won't seek cooperation. They want it all for themselves. That's why they continuously provoke China and seek to cause trouble in many ways. Their last option is the unthinkable: a war with China. It remains to see whether they are crazy or desperate enough to open the gates of hell.
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