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More market manipulations from China?

According to media reports surfacing this week, China is looking to cut essentially cut mining rights for REE producers in half – to 67 points down from 113.

Analysts tie the move into China’s overall effort to “strengthen its pricing power in the international rare earth market.” This wouldn’t be the first time China, which still controls roughly 95% of global Rare Earths production, resorts to market-manipulation schemes. In recent history, suppliers have seen prices affected by embargos, export quotas and other restrictions. Whatever China’s motives, however, these news underscore the necessity for U.S. lawmakers to realize that China remains a force to be reckoned with in the resource world, and has to be factored in when formulating a critical mineral strategy.