ID :
195161
Fri, 07/15/2011 - 06:52
Auther :
Shortlink :
http://m.oananews.org//node/195161
The shortlink copeid
China to keep rare earth export quota at last year's level
HONG KONG, July 15 (Yonhap) -- China said Friday that it will maintain its export quota of rare earth elements at nearly the same level as last year, in a move to try to pacify its trading partners.
China supplies 97 percent of the world's rare earth elements and has gained its market dominance by cutting prices of the elements. The country has about 30 percent of the world's rare earth reserves.
Concerns have mounted among the countries that rely on the Chinese supply of rare earths since the country started this year to beef up regulations on rare earth exports and to limit production of the elements.
The Chinese Ministry of Commerce said on its Web site that rare earth export quotas for 26 companies in the second half of 2011 will be 15,738 tons, which makes the full-year export quota a total of 30,184 tons. Last year, China exported 30,258 tons.
Rare earth elements are crucial for the production of components used in consumer electronics. Some types of rare earth materials can be used in more advanced technology areas, including missiles.
The announcement comes about a week after the World Trade Organization (WTO) ruled against China for cutting exports of eight raw materials, which did not include rare earths.
The United States and Europe had expected the WTO's ruling would lead China to increase exports of 17 rare earth elements, seeing last year's supply level as not enough to meet worldwide demand.
Both the U.S. and Europe were not satisfied with China's announcement.
"We continue to be deeply troubled by China's use of market-distorting export restrictions on raw materials including rare earths," the U.S. Trade Representative said in a statement, adding that the announced quota is equivalent to 60 percent of the 2009 export level.
China has argued that the extraction of rare earths has caused environmental damage in the country and rampant mining has resulted in diminished supplies.
As part of its move to limit rare earth production in the country, the Chinese government last month shut down 205 non-coal mines in resource-rich Inner Mongolia and suspended operations of 136 other mines there.
China supplies 97 percent of the world's rare earth elements and has gained its market dominance by cutting prices of the elements. The country has about 30 percent of the world's rare earth reserves.
Concerns have mounted among the countries that rely on the Chinese supply of rare earths since the country started this year to beef up regulations on rare earth exports and to limit production of the elements.
The Chinese Ministry of Commerce said on its Web site that rare earth export quotas for 26 companies in the second half of 2011 will be 15,738 tons, which makes the full-year export quota a total of 30,184 tons. Last year, China exported 30,258 tons.
Rare earth elements are crucial for the production of components used in consumer electronics. Some types of rare earth materials can be used in more advanced technology areas, including missiles.
The announcement comes about a week after the World Trade Organization (WTO) ruled against China for cutting exports of eight raw materials, which did not include rare earths.
The United States and Europe had expected the WTO's ruling would lead China to increase exports of 17 rare earth elements, seeing last year's supply level as not enough to meet worldwide demand.
Both the U.S. and Europe were not satisfied with China's announcement.
"We continue to be deeply troubled by China's use of market-distorting export restrictions on raw materials including rare earths," the U.S. Trade Representative said in a statement, adding that the announced quota is equivalent to 60 percent of the 2009 export level.
China has argued that the extraction of rare earths has caused environmental damage in the country and rampant mining has resulted in diminished supplies.
As part of its move to limit rare earth production in the country, the Chinese government last month shut down 205 non-coal mines in resource-rich Inner Mongolia and suspended operations of 136 other mines there.
