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Friday, March 23, 2012

postheadericon For American jobs, China's cheating on rare earth trade must end

When China cheats, America loses jobs.

Members of the World Trade Organization, including the United States, are prohibited from using quotas on exports. When China joined the World Trade Organization it committed to follow these rules. At that time, China also agreed to avoid export taxes or duties. In flagrant disregard for the international trade rules it has agreed to, China is holding hostage rare earth elements and other essential raw materials needed for manufacturing.

With the growing use of electronics, rare earth elements have become essential to the production of everything from batteries and iPads to advanced weapons critical to our national defense. By hoarding these materials, China hurts American manufacturers. The U.S.-China Economic and Security Review Commission has long-warned these policies disadvantage U.S. producers of advanced electronics, batteries for hybrid cars, and precision-guided weapons.

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