China's rare earth affect

Rare earth elements are critical to protecting the environment by reducing emissions through renewable energy technologies. However, their extraction is also a detriment to the environment. Currently, China is by far the number one exporter of rare earth elements, which the rest of the world depend upon to produce hybrid cars and wind turbines, among other renewable energy technologies.

Recently, however, China has decided to slash export quotas of rare earth elements to protect the future of its environment. China plans to reduce its export quotas from last year by nearly 40 percent, a move that has importing countries worried. The move will drive up global prices for the rare earths, also negatively impacting the Chinese market.

Despite the move, China will remain the world leader in rare earth element extraction and exportation. China controls 95 percent of the recoverable reserves of rare earth elements, most of which exist in inner Mongolia.