China to Stockpile Rare Earth Metals, should the US do so too ?

A Wall Street Journal article (February 7,2011) describes plans by the Chinese Ministry of Land and Resources to build reserves of rare earth metals in order to protect their industries, impact pollution and manage the supply and demand relationship for these commodities.  In response, the article cites Rep Mike Coffman as the author of a bill mandating the US military to build stockpiles and thus ensure US supply chain competitiveness.  Such calls have also appeared in other reports published recently. But another school claims that such efforts will further impact prices in the short run and thus argues against it.  Other countries such as Japan and South  Korea have planned stockpiles.  Should the US government start building up rare earth stockpiles to assist US industry ? Can coordinated stockpiles across countries be counted in to solve the global supply problem ? Or will industrial innovation resolve the problem ?

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About aviyer2010

Professor
This entry was posted in Collaboration, Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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