Supply chains

China is holding the West to ransom over rare earths

China’s naked weaponization of rare earths brings to mind Mao Zedong’s "four pests" campaign, the old tyrant’s fanatical effort to exterminate all flies, mosquitoes, rats and sparrows, which turned into a spectacular piece of self-harm. Sparrows were always an odd choice of enemy, but Mao and his communist advisors reckoned each one ate four pounds of grain a year and a million dead sparrows would free up food for 60,000 people. The campaign, launched in 1958, saw the extermination of a billion sparrows, driving them to the brink of extinction. But the sparrows also ate insects, notably locusts, whose population exploded, and the ravenous locusts wreaked far more damage to crops than the sparrows ever did, hastening China’s descent into the deadliest famine in human history.

ian williams china rare earths

The revenge of the analog economy

The last few decades have seen the emergence of two rival economies: an older analog one built on the actual production of goods, and another that profits from financial transactions, images and customer surveillance. The contest between the two has been rather one-sided, with the “laptop economy” the big winner, particularly during the pandemic. But while lockdowns made this one-sidedness clear, recent developments have been an unwelcome reminder that the pain suffered in the analog economy still matters. Whether through inflation, energy shortages or supply chain issues, we are getting an uncomfortable lesson in the enduring relevance of the material world. Sadly, the needs of the analog economy aren’t taken seriously enough in Washington.

fracking

Remember panic-buying? Here’s what will happen next time

From our UK edition

It’s post-Christmas, and there are already murmurs about supermarkets with empty shelves. Just as with the petrol shortage in September and shortages of loo paper at the beginning of the first lockdown, these things can rapidly develop into major crises, purely as a result of panic-buying. Tesco, whose store on the Isle of Wight is reportedly especially empty post-Christmas, denies it has any problem with its supply chain — which had been threatened with disruption thanks to an industrial dispute involving the company’s lorry drivers in early December. People may, on the other hand, have stocked up more than usual in response to fears of a post-Christmas lockdown — a fear which appears for the moment to have gone away.

The car industry’s China crisis

From our UK edition

New cars could soon start disappearing from Britain’s forecourts, with the latest supply chain crunch threatening to cripple the global motor industry. It’s a crisis that once again delivers a stark warning about the dangers of over-dependence on China and the costs of succumbing to Beijing’s predatory trade practices. The automotive industry is currently facing a critical shortage of magnesium, which is an essential raw material for the production of aluminium alloys, including gearboxes, steering columns, fuel tank covers and seat frames. Stockpiles are running low, there is no substitute for magnesium in the production of aluminium sheets, and China has a near monopoly on the market.