artthoumadbrother

artthoumadbrother t1_jahzpps wrote

> it's the fact that the cost of extraction is very low in China due to low labour costs and crucially the lack of environmental regulations.

Probably more important than either of these is that the Chinese government wanted the current state of affairs---they want leverage, and being the world's primary supplier of REM gives them some. To that end, they're fire-hosed low or even zero interest loans at the domestic REM industry so that their suppliers could undercut everyone else. Like a lot of Chinese products, REMs are being sold by Chinese companies for less than it costs to produce them.

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