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Economy

China will not use rare earth as bargaining chip

(Xinhua)
Updated: 2010-10-28 17:37
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BEIJING - A Chinese official said on?Thursday that the country will not use rare earth as a bargaining chip.

China as the supplier of more than 90 percent of the world's rare earth, must coordinate multiple factors related to rare earth production and exports, including economic development, resource conservation and environmental protection, Ministry of Industry and Information Technology spokesman Zhu Hongren said at a?news conference.

Zhu said China's rare earth reserves account for 55.7 percent of the world's total. China has taken some measures to restrict the exploitation, production and export of rare earth, to help address problems in the rare earth industry like waste and pollution, he said.

"These measures are all in line with the rules of the World Trade Organization."

Rare earth, a class of 17 chemical elements, have become increasingly important in manufacturing sophisticated products, including flat-screen monitors, electric car batteries, wind turbines, missiles and aerospace alloys.

Related readings:
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China will not use rare earth as bargaining chip China wise to guard its rare earth wealth

However, mining the metals is very damaging to the environment. To protect the environment and the non-renewable metals, China announced a number of measures to regulate the rare earth industry, including reduced export quotas, crackdowns on illegal mining and mineral smuggling, issuing no new mining licenses and production caps and encouraging industry consolidation.

Zhu's statements echoed other Chinese officials' views. Some officials have repeatedly defended China's rare earth policies in response to complaints from global rare earth consumers.

Early this month, Chinese Premier Wen Jiabao said during the Sixth China-European Union Business Summit, "It is necessary to exercise management and control over the rare earths industry, but there won't be any embargo. China is not using rare earth as a bargaining chip."

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