China Cancels Talks with Japan on Sidelines of IPU Meet

Geneva, Oct. 6 (Jiji Press)--China has canceled a meeting with
Japan that was set to be held here Wednesday on the sidelines of a general
assembly session of the Inter-Parliamentary Union, informed sources said the
same day.
On Wednesday, the Chinese delegation of parliamentarians expressed
regret over remarks by Japanese delegates during an IPU session the previous
day about China's rare earth exports, and told Japan that it cannot hold
bilateral talks, the sources said.
According to the sources, who are close to the Japanese delegation,
the two countries agreed Sunday to hold the bilateral meeting on Wednesday.
When Japan contacted China on Wednesday to reconfirm the schedule,
however, the country said it wants to cancel the meeting.
The sources said the Japanese delegation expressed concerns during
Tuesday's session that importer countries will face a tight supply-demand
balance if China restricts rare earth exports.
Japan also raised the issue of China's gas development in disputed
waters in the East China Sea.
The Chinese delegation complained that it is inappropriate for
Japan to take up such bilateral problem at an IPU meeting and explained that
China decides what to do with rare earth exports and gas development based
on appropriate national policies.
China's rare earth exports to Japan have come to a virtual halt
amid bilateral tensions over a maritime collision near disputed islands in
September.
China accounts for over 90 pct of global production of rare earths,
key minerals used in a wide range of high-technology products. Japan depends
on China for 90 pct of its demand.