According to Scott, Margonelli and Appelbaum, by focusing on price alone, the U.S. allowed the market to determine the value of crucial components like rare earths.
Fortunately, a company is trying to re-open the rare-earths mine in California in the next couple of years, as market theory would predict. But in the meantime the delay will result in more harm to American manufacturing and a competitive advantage to the Chinese.
This story shows why trade policies toward China and industry in general need a serious re-examination.
Ends today: If you'd like to help CJR and win a chance at one of
10 free print subscriptions, take a brief survey for us here.