An International Public Goods Perspective upon China’s Resource Governance: the Function and Invalidation of REO(rare earth oxide) Economic Diplomacy
DOI:
https://doi.org/10.14666/2194-7759-4-2-003Keywords:
REO - International REO trading system - International public goods National power - Economic diplomacyAbstract
The defeat of China’s REO lawsuit in WTO reflects the worsening
international environment of China’s REO trade and failure of China’s REO
economic diplomacy. REO trading system under the WTO framework is essentially an
international public goods provided by both REO consuming and supplying countries.
China and Western countries are assumed the responsibility of providing material
and normative public goods. However, China’s high cost of providing public goods
and profit outflow resulted in China’s practical dilemma in REO trade. Although
China’s economic diplomacy committed to reverse this imbalanced situation, due to
the block between capability and power conversion, the dominance of REO resources
in China failed to translate into a trade advantage, thus proclaiming the failure of REO
economic diplomacy and leading a more serious imbalance.
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