HONG KONG (MarketWatch) -- China has halted shipments of "rare earth" minerals to Japan, the New York Times reported Thursday, citing unidentified industry officials. The reported move came after Chinese Premier Wen Jiabao Wednesday threatened retaliatory action against Japan which is holding the captain of a Chinese fishing trawler. The trawler captain was detained by Japanese maritime authorities after fishing in waters controlled by Japan, but claimed by China and Taiwan. http://www.marketwatch.com/story/china-halts-rare-earth-shipments-to-japan-nyt-2010-09-23 Hum, a fishing trawler is causing retaliation ?
not for japan. in the big picture they are not a huge player in chinese manufacturing, but by contrast china is one of their biggest consumer market. US was #1 china #2 not sure if that flipped now. Cars, electronics, and appliances. It will cripple japan if chinese banned japan goods from entering china. I hope this doesnt escalate any further, if a war does breakout, us will get involved for sure on japan's behalf. Then it's game over for everyone...
Amen. I really don't get Japan's game here. No one expects them to recognize Chinese sovereignty here, but why are they holding a boat captain over scratched paint? This is the kind of stuff that North Korea and Iran does.
U.S. and European auto workers would like the move because the material is essential to auto industry. This may destroy Japanese automobile industry.
LA Times reports China denies any export ban. Sounds like these might be already announced decreases in export quota.
you may want to update your stats, the US has fallen behind relatively in terms of trade in and out of China. For several years already Europe and Japan have outstripped the US in terms of trade with China.