Network Metals LLC

“The U.S. and the European Union raised complaints this week at the World Trade Organization over China's export restraints on raw materials” (Wall Street Journal 6/26), contending that China is exercising ‘illegal’ control over certain raw material exports used by US steel, aluminum and chemical companies. This might be the most ridiculous use of government energy we’ve seen, and a perfect example of why businessmen ought to run countries and not lawyers.


While it is possible to consider that, in a few years, the restriction of strategic metals (mostly rare earths) for export by China to the Western world may take place, at this time (pre- and post-recession) most of the metals listed are freely available. In fact, in real life the Chinese are using export rebates to encourage their export markets. Granted, the rebates apply to the semi-finished products and not these raw form metals, but that is their prerogative in order to encourage use of labor and value-added.


But perhaps the most confusing issue is why the USA would press forward with these allegations, while at the same time imposing 100% import duties on silicon and magnesium from China. Furthermore, if the USA and the EU were really so concerned, they would reverse their anti-mining policies and develop the resources that they already own.