| The Trump administration’s launch of its trade war against China some eighteen months ago has had wider implications. It has not only escalated into a wider dispute between the two countries; it has led to trade distortions with ramifications for a broad set of countries.
The US-China dispute has led to a fracturing of supply chains. Illustratively, Malaysia exports electronic parts to China. These parts are then incorporated into finished products which are in turn exported to the US. Both Lynas and Sojitz Corporation entered into an agreement in 2010 to reduce Japan’s reliance on China as a source to meet Japanese demand for rare earths. This was the year when Beijing had cut rare earths exports by 40 percent and blocked Japan-bound shipment of the minerals over the issue of the dispute concerning the Sensaku islands.
China, on the other hand, produces almost 80 percent of the global output of rare earths. Malaysia finds itself embroiled in the midst of the US-China trade war alongside other friendly nations like Japan and Australia. Past threats by China to cut off exports if acted upon, would make the Lynas facility a critical source of supply of rare earths for Japan and its long-time ally, the US.
The latter have based their opposition on the grounds of the environmental hazards posed by arrangements for disposal of radioactive waste. At the same time, Malaysia has ensured that US demand for rare earths will be met from the Kuantan facility.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: malaymail - 🏆 1. / 86 Read more »
Source: fmtoday - 🏆 5. / 72 Read more »
Source: NST_Online - 🏆 17. / 53 Read more »
Source: fmtoday - 🏆 5. / 72 Read more »
Source: malaymail - 🏆 1. / 86 Read more »
Source: fmtoday - 🏆 5. / 72 Read more »