Analyze the dominance of China in the hi-tech industry. What scarce resource is extracted from the Earth to support this dominance?
China has become a dominant player in the hi-tech industry, particularly in areas such as electronics, telecommunications, and advanced manufacturing. This dominance can be attributed to various factors, including China's significant investment in research and development, a large and skilled labor force, government support, and a broad manufacturing base.
One key scarce resource that China has utilized to support its dominance in the hi-tech industry is rare earth elements (REEs). REEs are a group of 17 chemically similar elements that play an essential role in the production of various advanced electronics and high-tech devices. Some of these elements include neodymium, dysprosium, and terbium.
China possesses the largest known reserves of REEs and accounts for approximately 80% of global production. This significant control over REE supply has given China a strategic advantage in the hi-tech industry. Chinese companies have been able to secure a steady and reliable supply of these crucial resources, giving them a competitive edge in terms of cost and availability.
China's dominance in the hi-tech industry is further reinforced by its control over the processing and refining of REEs. The extraction and processing of these elements require advanced technology and expertise, which China has developed over the years. This has allowed China to establish a vertically integrated industry, encompassing mining, processing, and manufacturing, all within its borders.
Additionally, China's dominance in REEs has raised concerns among other countries about potential supply disruptions and over-reliance on a single source. As a result, several countries have been exploring alternative sources and investing in recycling and research to reduce dependency on China.
In conclusion, China's dominant position in the hi-tech industry is supported by its control over rare earth elements, which are a scarce resource extracted from the Earth. The country's abundant REE reserves, coupled with its advanced processing capabilities, have given China a significant advantage in this sector, contributing to its overall dominance in the global hi-tech industry.