A front loader shifts soil containing rare earth minerals at a port in Lianyungang, east China's Jiangsu province, for export to Japan. (AFP Photo)
The nation's cut its first batch of rare earth export quotas for next year by more than one-tenth, in the face of a threat by the US to complain to the World Trade Organization (WTO) over the export limits.
Ministry of Commerce allotted 14,446 tons of quotas to 31 companies, which was 11.4 percent less than the 16,304 tons it allocated to 22 companies in the first batch of 2010 quotas a year ago.
The ministry said in a short statement on its website that it had added more producer companies to the quota list, but has cut volumes allocated to trading companies for the metals used in high-tech goods.
The export quotas were based on export volumes from the beginning of 2008 to October 2010, it added, without giving details.
China produces about 97 percent of rare earth elements, which are used worldwide in high-technology, clean energy and other products that exploit their special properties for magnetism, luminescence and strength.
The decision to cut export quotas and raise tariffs has inflamed trade ties with the US, European Union and Japan in particular.
Last week, the US Trade Representative office said China had refused US requests to end export restraints on rare earths that have alarmed trade partners.
China says its curbs are for environmental reasons and to guarantee supplies to domestic industrial consumers, but it has also insisted its dominance, as a producer should give it more control over global prices.
Beijing is expected to establish a rare earth industry association by May next year, said Wang Caifeng, an official with the Ministry of Industry and Information Technology, speaking at a conference Tuesday.
(Agencies)
No comments:
Post a Comment