By Farish A. Noor
'FREE TRADE': China's move to control exports of rare earth has provoked accusations of unfair trading practices
RARE earth products are in the news again, this time not only in Malaysia but also in the international press.
United States President Barack Obama's launching of the new Trade Enforcement Unit (TEU) signals a downturn in relations with China as the unit has ostensibly been set up to further the demands of American producers for rare earth, which happen to be a crucial component in the manufacture of things like flat-screen TVs, handphones and other consumer goods that have become the rage the world over.
But China -- which produces more than 90 per cent of the rare earth in the world -- has imposed a quota on how much it exports to other manufacturing countries.
This week, the US, European Union and Japan have brought the matter up to the World Trade Organisation (WTO) and accused China of unfair trading practices.
That the Chinese are apprehensive about the move is hardly a surprise, for it marks a significant shift in the tone and tenor of its trade relations with other developed nations. That the Chinese may be somewhat annoyed by all this talk of unfair trading practices is also understandable if we were to look at how the concept of fair trade has been applied to China over the past two centuries.
In the 19th century, "free trade" meant that China was forced to open its markets to the import of opium, which led to widespread opium addiction among the population, debilitating its economy and people, and was the catalyst to the so-called "opium wars" of the 19th century.
Today, in the name of "free trade" China is being compelled to open up its economy again -- so that it may sell its rare earth to other more powerful trading nations. Which brings us to the question of politics or, specifically, the politics of free trade and the environment.
It is ironic to note that, on the one hand, the developed countries of the world bemoan the fact that Asian nations like China are producing and consuming more than ever. A decade ago, there was much alarmist talk of the new economies of China and India consuming too much, as Chinese and Indian consumers bought more air-conditioners, fridges, TVs, cars, etc.
It was argued that if every Chinese or Indian family had a car, TV and microwave, then the environmental cost to the world would be catastrophic: the ozone layer would be destroyed, global warming would ensue and billions would die.
Yet it beggars belief that developed nations can lecture Asians not to consume the same products that their ownNike

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