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