Replies to post #19587 on China Growth Stocks

[tenenbaum]

I meant they also seem to be diversified into manufacturing businesses as well (manufacturing using rare earth materials). I'm not sure what their overall exposure to any sort of mining is.

[FanPaw]

Rare Earth Metals

There are a few pure plays outside of China.

The background: China flooded the global market with cheap product for a number of years and drove the competition to the wall; mines were closed.

But China is now getting more aware of the long term strategic importance of rare earths and is starting to restrict the volume of exports. When and to the degree this happens, supply from other regions in the world will have to increase again. The transition can be expected to be difficult with supply shortages for periods of time, and concomitant speculative fever in the sector.

It usually takes years to get new mining ventures into production.