government policies and regulations

• FPO

  • Factor: Government policies and regulations 
  • Process: influence production methods, consumption patterns and waste management practices
  • outcome: Export restrictions have led to concerns among importing countries, particularly those heavily dependent on Chinese rare earth supplies. This has prompted efforts to diversify sources and reduce reliance on China
• Example

  In 2019, China, which controls 95% of the rare earth production globally, threatened to cut off supplies of rare earth, as a leverage point in the trade war between China and USA. China supples about 80% of the rare-earth elements imported by the US, which are used in oil refining, consumer electronics, defence and more.