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1、China'sRareEarthElementsIndustry:WhatCantheWestLearn?ByCindyHurstCorporateAuthor: INSTITUTEFORTHEANALYSISOFGLOBALSECURITYWASHINGTONDCPersonalAuthor(s): Hurst,CindyReportDate: MAR2010PaginationorMediaCount: 43InstitutefortheAnalysisofGlobalSecurity(IAGS)U.S.ArmyForei
2、gnMilitaryStudiesOffice,731McClellanAvenue,FortLeavenworth,KS,66027CindyHurstisananalystfortheU.S.Army’sForeignMilitaryStudiesOffice,FortLeavenworth,KSIntroductionChinacontrolsapproximately97percentoftheworld'srareearthelementmarket.Theseelements,whicharenotwidelykn
3、ownbecausetheyaresolowontheproductionchain,arecriticaltohundredsofhightechapplications,manyofwhichdefineourmodernwayoflife.Withoutrareearthelements,muchoftheworld'smoderntechnologywouldbevastlydifferentandmanyapplicationswouldnotbepossible.Foronething,wewouldnothave
4、theadvantageofsmallersizedtechnology,suchasthecellphoneandlaptopcomputer,withouttheuseofrareearthelements.Rareearthelementsarealsoessentialforthedefenseindustryandarefoundincruisemissiles,precisionguidedmunitions,radarsystemsandreactivearmor.Theyarealsokeytotheemerg
5、enceofgreentechnologysuchasthenewgenerationofwindpoweredturbinesandplug-inhybridvehicles,aswellastooilrefineries,wheretheyactasacatalyst.(Note:formorein-depthinformationonthespecificusesofrareearthelements,refertoAppendixA).Overthepastfewyears,Chinahascomeunderincre
6、asingscrutinyandcriticismoveritsmonopolyoftherareearthindustryandforgraduallyreducingexportquotasoftheseresources.However,Chinaisfacedwithitsowninternalissuesthat,ifnotaddressed,couldsoonstressthecountry'srareearthindustry.Thispaperisdesignedtogivethereaderabetterun
7、derstandingofwhatrareearthelementsareandtheirimportancetosocietyingeneralandtoU.S.defenseandenergypolicyinparticular.ItwillalsoexplorethehistoryofrareearthelementsandChina'scurrentmonopolyoftheindustry,includingpossiblerepercussionsandstrategicimplicationsifrareeart
8、helementssupplyweretobedisrupted.TheIssuesChinaFacesAccordingtoZhaoShuanglian,ViceChairmanofInnerMongolia’sAutonomousRegions,“Rareearthisa
