Mostly I agree with you, but let us not overlook the "in the meantime" problem. In the long run the market will arrive at equilibrium. But in the meantime the Chinese have reaped rewards which have given them competitive advantage. "In the meantime " --don't leave home without it. Billy ------------------------------------ 4/26/2012 10:10:27 P.M. Pacific Daylight Time, [email protected] writes:
This is why I discount most (not all) Chinese alarmism. The very anti-market thinking that lets them move quickly and strategically becomes their downfall. E Sent from my iPhone On Apr 26, 2012, at 21:47, [email protected] wrote: > The rare-earths story illustrates a larger point about China's development. Despite such well-laid plans, Beijing all too often underestimates market forces and the resistance it will face from local authorities and industries that do not share the central government's interests. For one, the market effect of capping rare-earths exports has been a precipitous rise of rare-earths prices on the world market -- exactly what Beijing intended. But higher prices since 2010 have allowed firms such as Australia's Lynas Corporation to begin developing -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org -- Centroids: The Center of the Radical Centrist Community <[email protected]> Google Group: http://groups.google.com/group/RadicalCentrism Radical Centrism website and blog: http://RadicalCentrism.org
