China plays trade games

China, which publicly proclaims its desire to be a full-fledged partner in world economic affairs, privately acts as if it is a spoiled brat willing to play hardball to assure its position as a world power. That violates pledges the country has made to international organizations. It also puts the United States and many other nations that depend on certain exports from China at risk.

The most recent manifestation of China's high-handedness is its decision to restrict the export of rare earths, elements with names unfamiliar to most but that nevertheless are necessary in the manufacture of a wide variety of electronics, military items, wind turbines, cell phones, solar panels and hybrid motors. The result is obvious: Stresses and strains on industries important to national security, disruption in global trading patterns and reductions in the ability to move forward with clean-energy products and the job growth they promise.

For years, rare earths were mined in many locales around the world. China, however, could produce them cheaper and soon cornered the market. That was acceptable, for the most part, as long as China honored commitments to sell the elements. It stopped doing that recently. Indeed, the Chinese cut export quotas for the rare earths by about 70 percent.

That violates Chinese pledges to the World Trade Organization, which bans export quotas in most instances. Nations dependent on rare earth from China have little choice at the moment. They must begin to look for other sources. A bill in Congress, for example, would provide loan guarantees to resume rare-earth mining in this country. Approval is expected, but it will take time to open and develop mines. The country can ill afford the wait.

Chinese truculence about rare earths should be a major topic of conversation at the Group of 20 meeting in South Korea later this month. Public exposure of a policy that threatens to undermine critical world markets might remind China that its own economic viability is tied directly to the success of global trading partners dependent on elements it now hoards.

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