China’s Rare Earths Dominance: A 60-Year Strategy

by Mark Thompson

China’s Leaders and the Legacy of industrial Pollution

For decades, successive generations of Communist Party leaders in China, alongside high-ranking military officials, knowingly fostered growth in a heavily polluting strategic industry, creating a complex legacy of environmental damage and economic dependence. This long-term investment, prioritized for national security and economic advancement, has resulted in meaningful environmental consequences that the current governance under Xi Jinping is now grappling with. The deliberate prioritization of industrial output over environmental concerns reveals a consistent pattern of decision-making at the highest levels of Chinese governance.

Successive administrations, from Deng xiaoping onward, viewed the industry as crucial for national strength. A senior official stated that the sector was considered “non-negotiable” for achieving economic self-sufficiency and bolstering military capabilities.This strategic focus led to substantial investment and rapid expansion,frequently enough with little regard for environmental regulations.

did you know? – China’s economic reforms begining in 1978 prioritized rapid industrial growth, often at the expense of environmental safeguards. This policy shift laid the groundwork for decades of pollution.

The Roots of the Problem: Deng xiaoping’s Era and beyond

The foundations for this pattern were laid during the economic reforms initiated by Deng Xiaoping in the late 1970s. While these reforms spurred unprecedented economic growth, they also unleashed a wave of industrialization that prioritized quantity over quality and environmental protection. Early policies incentivized production, and local officials were often judged on economic output rather than environmental performance.

This approach continued through the administrations of Jiang Zemin and Hu Jintao. one analyst noted that “the pressure to deliver economic growth consistently outweighed environmental considerations at every level of government.” The industry benefited from preferential policies,including access to cheap land,financing,and lax enforcement of environmental regulations. This created a system where pollution was effectively subsidized.

Military Involvement and Strategic Importance

The industry’s strategic importance extended beyond civilian applications, with significant involvement from the People’s Liberation Army (PLA). Military leaders and affiliated enterprises invested heavily in the sector, viewing it as vital for modernizing the armed forces and reducing reliance on foreign suppliers.

According to a company release,several PLA-linked companies directly owned and operated polluting facilities. This direct involvement further entrenched the industry’s position and shielded it from stricter environmental oversight. The intertwining of military interests and industrial production created a powerful lobby that resisted efforts to impose more stringent regulations.

pro tip – Understanding the link between China’s military modernization and its industrial policies is key to grasping the persistence of pollution despite growing environmental awareness.

Xi Jinping’s Challenge: Balancing Growth and Sustainability

Under Xi Jinping,China has publicly committed to environmental protection and lasting growth. However, dismantling the legacy of decades of polluting industrial activity presents a formidable challenge. While the central government has introduced stricter environmental regulations and invested in cleaner technologies, enforcement remains uneven, and the industry continues to exert significant economic and political influence.

The current administration faces a delicate balancing act: maintaining economic growth, ensuring national security, and addressing the environmental consequences of past policies. A senior official acknowledged the difficulty of “untangling decades of entrenched interests,” but emphasized the government’s commitment to a “green transition.”

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The long-term implications of this ancient pattern are profound.China’s environmental challenges not only impact its own population but also have global

Reader question – How might China’s historical prioritization of industrial output affect its ability to meet its stated environmental goals? What trade-offs are likely?

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