Obama Annouces Trade Case Against China in The Name of US Workers

President Obama announced the United States would be pursuing a new trade case against China, which he accuses of manipulating the marketplace for “Rare Earth” materials which are used to make most high tech devices and batteries.

Obama says that restrictions on the rare earth materials by China has made American companies unable to compete in manufacturing and development of high tech gadgets.

Obama said,

“We want our companies building those products right here in America, but to do that American manufacturers need to have access to rare earth materials which China supplies. Now if China would simply let the market work on its own, we would have no objections. Their policies currently are preventing that from happening, and they go against the very rules that China agreed to follow.”

Obama is linking the case to his energy policy. He claims that if the market for rare earth materials isn’t more robust than most alternative energy products will take place in China (most clean energy technologies require rare earth materials). He said that the United States cannot let China accomplish that by breaking the rules.

The U.S., working in conjunction with the European Union and Japan, asked the World Trade Organization to supervise talks with China.

Obama said,

“When it is necessary, I will take action if our workers and our businesses are being subjected to unfair practices,”

China has a stranglehold on the global supply of 17 rare earth minerals that are essential for making high-tech goods, including hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapor lights, smartphones and camera lenses. Administration officials said Beijing’s export restrictions give Chinese companies a competitive advantage by providing them access to more of these rare materials at a cheaper price, while forcing U.S. companies to manage with a smaller, more costly supply.

Do you agree with President Obama getting tough with the Chinese?