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Chapter 225 Market Behavior

"Control exports, from China's perspective, are considered from the long-term interests and economic interests. It is reasonable for us to restrict exports to some resources that can have a certain price influence." Jiang Feng said, "But I found a problem that many so-called experts and scholars in China were promoting foreigners at this time, saying that the market economy should not be restricted by government means, otherwise it would violate the rules of the market economy, etc."

"Well, I have heard a lot of this sound, which is really confusing." Meng Tong replied.

"In fact, restricting the export of rare metals does not violate the rules of the WTO." Jiang Feng told Meng Tong, "In the WTO multilateral trading system, there are no strict regulations on a country's export restrictions. At the same time, as our government, we have never made such commitments."

"In fact, not only is China increasing its protection of rare earth resources year by year, the United States has gradually stopped mining its own rare earth resources. Our neighbor Japan has begun to establish a rare metal reserve system and base since 1983. South Korea is also adopting the method of cooperation between official and private enterprises to plan to increase the scale of rare metal reserves." After a pause, Jiang Feng continued, "In contrast, China has been selling blood for many years. Even if we do not export a kilogram of rare earths, it is normal. China does not have the obligation to become a cheap resource market for other countries. If China reduces the amount of rare earth sold, it will threaten the national security of the United States, then does it mean that Americans do not mine rare earth resources, which harms the interests of countries around the world and threatens the national security of all countries that lack rare earth resources?"

"To extend it, in recent decades, Western countries led by the United States have always imposed sanctions on weapons embargo, as well as the technological blockades of European and American countries over the past decades of our country, etc. In our opinion, are unjust behaviors also threatening our China's national security?" Jiang Feng smiled. "We can think so, but Americans definitely don't think so, because in their hearts, China is first positioned in an unjust position. Even as long as behaviors and measures that do not meet the interests of the United States are, they are unjust and threatening the national security of the United States. Therefore, they can use force to attack Yugoslavia, or send troops to subvert Saddam's Iraqi government. This is the logic of the Americans!"

In order to fully illustrate the rationality and legitimacy of domestic rare earth policies, Jiang Feng also gave examples to illustrate the important role of rare earths and metal tungsten in the international market.

Rare earths are widely used in the production of various products, involving all aspects of modern life, from cobalt on mobile phone batteries to neodymium on Toyota hybrid cars, from europium and yttrium on TVs, to lanthanum on camera lenses, from calculators to the latest music players, with rare earth elements in front of them.

Data shows that one of every five invention patents in the world today is related to rare earths.

Tungsten is a rare metal with high melting point, high specific gravity and high hardness. Its unique properties and functions make it a raw material necessary for the national economy, people's livelihood and national security, including automobiles, electronics, information, atomic energy, aerospace, machinery industry, semiconductors, special steels, heat-resistant alloys and cutting-edge weapons.

"In another ten years, twenty years, if our metal processing capabilities are greatly lacking and the mechanical industry is paralyzed, it must be mainly lack of tungsten. If some people say that our aircraft cannot produce (the balance system and counterweight system of the aircraft, the inertial rotation components in the instrument system and the rotor of the gyroscope must be made of high specific gravity alloys made of iron, nickel, copper and manganese with high tungsten content), the aerospace industry cannot develop (the rocket nozzles, nozzles, etc. in the aerospace industry must all require tungsten). Why is this because we have no tungsten." Jiang Feng said to Meng Tong, "Currently, the United States, Japan and other countries use the entire international tungsten market they control to intentionally raise the prices of tungsten products and rare earth products, and prohibit strategic competitors like China from using imported rare metals such as tungsten products for military purposes. All this has happened, is happening or is about to happen, which is unimaginable and worrying."

"What you said is so terrible, isn't it an exaggeration?" Meng Tong held the coffee cup. Although she was sitting in the room very warm, she felt a little chilled.

Jiang Feng waved his hand and said, "No, I have no intention of exaggeration at all. On the contrary, this has not really exposed the secret conspiracy of Europeans and Americans. In this case, it is understandable and necessary for China to strengthen the collection and storage of rare metals such as rare earth resources to protect and regulate resource prices and resist external risks. From a strategic perspective, China does not have to pay too much attention to the complaints of these foreigners, because these rare metal resources are concentrated in China. This is China's strategic resource. Chinese people have the right to dispose of their own resources without other countries' fingers like this. As for what threatens the national security of the United States, it is even more shit! The United States still has thousands of nuclear weapons, which is a threat to China's national security!"

Meng Tong nodded and said, "Oh, then should we establish national strategic deployment and include such strategic resources on the list of key protections? Regulate corporate behavior through government laws?"

"National strategy? No, that's inappropriate." Jiang Feng laughed immediately after hearing this, looking a bit as cunning as a weasel who had just stolen a little chicken. Then he said to Meng Tong with righteousness, "I don't agree with the government's government restrictions. Although it is effective, it is easy to be criticized by other countries. This is always bad. Over time, foreigners will easily demonize China with more reasons."

"What should I do? How does Jiang's Group limit the export policy for rare earths now?" Meng Tong asked curiously.

In fact, as a native Chinese, he has long been accustomed to working under government laws. Therefore, when he heard that Jiang Feng did not advocate regulating rare earth exports by standing at the height of national strategy, Meng Tong felt that this matter was a bit confused.

"Market! We are a market economy! Although many countries do not recognize this!" Jiang Feng said seriously, "But we must be successful, and we need to be accepted by all countries in the world. We are a genuine market economy! More authentic than Americans! Therefore, all disputes must be resolved under the market mechanism!"

"Well, Mr. Jiang, you are right." Meng Tong smiled.

Jiang Feng said to Meng Tong: "In the past, some people always said that there is oil in the Middle East and rare earths in China. The implication is that China can maximize its interests by manipulating the price of rare earths to market supply, and even threaten the political effects of other countries, in fact, this is just a wishful thinking."

"Why?" Meng Tong asked with his head tilted, "Mr. Jiang, you just told me about the importance of so many rare earths. Now Is it a bit contradictory to say this?"

"The reason why I told you that you cannot apply government laws to limit it, but should regulate it through market behavior is that based on this starting point, behaviors that are separated from market behavior will always be backfired by the market mechanism." Jiang Feng said with a smile.

"Please give an example." Meng Tong asked.

"This is easy to say, just like China imports overseas iron ore." Jiang Fengshens pointed out a typical example.

Although China's crude steel production accounts for about half of the world and China accounts for about 60% of the world's total seaborne iron ore imports, China's efforts to control global iron ore prices have repeatedly hit a wall.

Intuitively, China's situation in the iron ore and rare earth markets is an inevitable phenomenon, because in the previous market, China is controlled by others, while in the latter market, China controls others. If you study it carefully, you will find that the reason why China is now likely to control the world rare earth market is not enough to occupy the vast majority of the world's existing rare earth production. The key is that China has the ability to control the global rare earth prices. With price control, China can squeeze out foreign rare earth manufacturers and thus control the world rare earth market.

It can be seen that if you want to control a market, the key is to control the price of this market. In today's hands, China's attempt to control the price of iron ore is tantamount to seeking fish by wood. This is also the reason why China has been unable to make iron ore produce Chinese prices.

"For the Chinese, if you are happy because China can control the world's rare earth market, you don't have to complain about the world's iron ore market being controlled by the three giants. The world is already full of various mutually restrictive relationships." Jiang Feng said, "From the future experience, from China's idea of ​​restricting rare earth exports has not been a clear policy, China's control of the world's rare earth market is also facing huge international resistance. If China's rare earth strategy has any inspiration for the iron ore strategy, it is: If you can hold others in one aspect, then you must be mentally prepared to be held by others in other aspects. That is to say, in today's world where interests of various countries are intertwined, no one can really hold others or be taken by others."

Meng Tong's interview with Jiang Feng finally came to an end. She had to go back and think about some things carefully and then sort them out. After seeing the reports, after hearing Jiang Feng talked about so many inside stories today, her heart was still relatively shocking, and it took some time to carefully digest these contents, and strive to come up with a more insightful and simple special article. (To be continued. Please search for Astronomy, novels are better, updated and faster!)
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