If, politically, it makes sense to break China's dominance of the rare earths market, then doing something to protect non-Chinese rare earths producers is a no-brainer.
For those of us with longer memories, we recall the behaviours or Qantas and Ansett and later Virgin when a new player tried to enter the market. The established companies used anti-competitive behaviours to prevent the new entrants from being able to establish themselves in the market.
It is highly likely that the Chinese government would subsidise Chinese producers if there was any meaningful competition to China's dominance. Arguing against the price floor on the basis of 'competition' seems to be arguing perfect world theory over real world fact.
Also, as we see in the US, the government is buying stakes in rare earths companies. How would Lynas (for example) be able to compete with Chinese and US companies that are protected/subsidised/owned by the Chinese and US governments? Hardly a level playing field.
If, politically, it makes sense to break China's dominance of the rare earths market, then doing something to protect non-Chinese rare earths producers is a no-brainer.
For those of us with longer memories, we recall the behaviours or Qantas and Ansett and later Virgin when a new player tried to enter the market. The established companies used anti-competitive behaviours to prevent the new entrants from being able to establish themselves in the market.
It is highly likely that the Chinese government would subsidise Chinese producers if there was any meaningful competition to China's dominance. Arguing against the price floor on the basis of 'competition' seems to be arguing perfect world theory over real world fact.
Also, as we see in the US, the government is buying stakes in rare earths companies. How would Lynas (for example) be able to compete with Chinese and US companies that are protected/subsidised/owned by the Chinese and US governments? Hardly a level playing field.