Schumer Urges the President to Get Tough With China on Rare Exports
On the eve of the Chinese president's visit to Washington, U.S. Senator Chuck Schumer (D) was in Rochester raising awareness and rallying support for an issue he says President Barack Obama needs to take action on while President Hu Jintao is here.
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Sen. Schumer is accusing China of unfair and illegal trade practices, particularly when it comes to trading rare earth elements. The elements are critical to a number of high-tech manufacturing businesses, including optics.
"We do not know what it's going to be, or when they're gonna send it to us," James Sydor, President and Owner of Sydor Optics Inc., told the senator.
For the last 40 years, Stefan Sydor Optics Inc. has been manufacturing telescope mirrors, 3D lenses, and polished glass for industrial, medical research, and defense.
Over the last few months, China has made it a lot more difficult to do business. China's commerce ministry drastically reduced export quotas for 2011 and imposed what Schumer called, “sky high export taxes on Chinese mining companies.” The combination resulted in a massive increase in the price of the elements.
"We go through 40 pounds a day,” Sydor said, “And it went from $9 a pound in August to $40 a pound in February."
Because China controls 97% of the earth’s rare elements, Schumer says its actions are not only unfair, it's illegal.
"On issue after issue for too long, we've just let the Chinese get away with everything. Maybe 20 years ago when they were a little country we said, ‘okay, we don't care that much.’ But they are the second leading economic power in the world, and it's about time that they started playing ball by the rules that everyone else does," Schumer said.
Schumer and Sydor are concerned about the impact continued unfair trade practices will have on American jobs.
"If we don't have cerium oxide, a ready supply of it, a constant supply of it, we're dead in the water," said Sydor.
"If the Chinese are true to the way they're operated before, I'll tell you what they're gonna try to do, they're going to try to set up a company like Sydor in China and sell them the materials cheaply, eventually putting at risk the jobs here. That’s what they've done in area after area," Schumer said.
Schumer said the U.S. does have leverage. He said the Chinese need the American market, especially because the communist country has a $200 billion dollar trade surplus.
"It sounds esoteric, but it's a serious threat to our economy, our jobs and our national security. China is like the bully in the school yard. It's about time someone stood up to them, and that's what we're asking President Obama to do in the next few days," Schumer said.
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