The Senkaku Islands: not much of a holiday destination (Photo: AP)
The mines at Baotao have slowed production in the light of the Diaoyou situation; they provide around 99 per cent of the world’s supply of rare earths.
In Baotao, inner Mongolia, a huge mine operates day and night. Workers in chemical suits hose acid into tunnels. Huge posters bearing images of smiling employees proclaim “Become the leader in Rare Earth mining!” as huge refineries and factories belch smoke into the sky. Yet this huge centrally planned project is in danger because of events thousands of miles away.
You probably haven’t heard of the Senkaku islands. Or, as they are known in China, the Diaoyou islands. Called the Pinnacle islands on British naval charts, they are a collection of uninhabited, barren rocks, home to a rare albatross and a exceptionally rare type of mole. Not a great holiday destination.
Last week, Japan arranged to buy the Senkaku islands from their private owners. There was uproar in China. In Beijing, cars were burned and Japanese businesses were attacked, and riots in Shenzen. The Senkaku/Diaoyou dispute has long been a flashpoint between the two nations. Every few years, ultra-nationalists from either side (or, indeed,from Taiwan, who also claim them) will sail out there, raise a flag, and cause a row.
However, it’s never been this serious before. Regardless of silly orientalist ideas about “losing face”, a quick glance at a map reveals why the governments care about these rocks. The islands are mid-way between Japan and Taiwan; a Chinese base there would push the range of carrier-killing ballistic missiles an extra four or five hundred miles into the Pacific.
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