It seems that China is becoming a major bone of contention for various industries as the rare metal supplier and owning 95 percent of world’s rare earth production. The World Trade Organization received a formal complaint from Japan, EU and the US against China as the later country has decided to exercise rare earth monopoly on the market and retain most of its production for the domestic market.

After this plan came to light, President Obama severely criticized the country for violating trade relations and spoiling the global supply of rare earth metal products which is usually used in laptops, mobile phones and other electronic equipments. As a result, the cost of production will shoot up and consumers have to pay more to acquire them. Moreover, it is not that deposits of rare earths cannot be found anywhere else; the startling fact is countries are not interested to invest in mining them.

Responding to the complaint, the Chinese authorities justify their stand saying they want to retain the rare earth metal supplies for its ever expanding domestic market and also to ensure that its deposits do not exhaust sooner and make it impossible to manufacture rare earth metal products.