How China Has Apple (and the World) by the Balls

Illustration for article titled How China Has Apple (and the World) by the Balls
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The iPad and the iPhone must be made in China. Ditto for, well, most everything. And it's not only because of cheap Chinese labor. Or sprawling factories. Or lax regulations. Those are reasons, but there's another one. And it's one you might not expect: mud.


The iPad—like other electronics—requires a large amount of rare earth elements mined from mineral rich sludge and mud. As website Mother Board pointed out, China controls 95 to 97 percent of the world's supply of rare earths.

Rare earth materials are used in lithium-ion batteries, displays to produce different colors, and magnets—not to mention glass and polishes.

This is real concern that China controlling the world's rare earths is very bad thing. President Obama filed a complaint with the World Trade Organization against China over it, and earlier this year, two companies (one in California and one in Austria) began mining for rare earth materials. Also worrying is that the U.S. Defense Department doesn't seem to realize how important rare earths are for national defense.

In Japan, there has been some success with recycling rare earths. Hitachi recently developed a motor without rare earths—a promising sign that manufacturing is possible without these materials.

But with companies like Foxconn making, well, everything, efforts like this might be too late. Plus, you know how foreign companies can sidestep China's rare earth export quotas? Why by moving their plants to China and manufacturing there. Just like Apple did.

Why the iPad Has to be Made in China [Vice]

(Top photo: Kin Cheung | AP)



I find it slightly amusing that Obama filed a complaint with the WTO over China controlling and mining materials held within their own borders. If the U.S. controlled 95-97% of the world's crude oil deposits, would we let china come in and mine? Hell no.