The case presents the ongoing geopolitical battle between China and Japan. Even though quite several nations on the planet have REEs, China owns over 95 percent of the industrial output capacity for all these elements, thus generating a worldwide monopoly (Humphries, 2010). A lot of the worldwide REE supply-chain is controlled by China from different parts of the planet through the creation of REEs on its land or through the procurement of mineral rights, including Africa. As revealed in the instance, this generates a scenario of REE reliance for states such as Japan along with the U.S., which are both very powerful on the world arena, and which consequently leads to important geopolitical frictions.
China needs REEs to sustain economic growth, arouse job creation at home and reduce its vulnerability to fuel shortages or price shocks (Caceres and Sophal, 2012). The deficit of REEs on the entire world market creates the problem of rare earth asymmetry, which impacts the relationship among firms and states at the global stage. The case scenario looks at the subtleties of the Japan-China politico-economical connections and discusses the engagement of other significant actors, including the USA and the EU, in the battle for resources.
PUBLICATION DATE: July 25, 2013 PRODUCT #: HEC061-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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