China under fire over rare-earth quota
The European Union has accused China of further restricting exports of rare-earth metals essential for the production of mobile phones and other high-tech gadgets.
After months of lobbying from Brussels, Washington and Tokyo, China on Thursday released new quota figures that would keep exports of the strategic materials on a par with last year’s level.
EU officials and traders contend that the new quota amounted to a decrease because it was recently amended to include “ferroalloys”, which contain rare-earth metals.
“This is highly disappointing,” a spokesman for the European Trade Commission said. “The EU continues to encourage the Chinese authorities to revisit their export restrictions policy to ensure there is full, fair, predictable and non-discriminatory access to rare-earth supplies as well as other raw materials for EU industries.”
Last week a World Trade Organisation panel ruled against Chinese export restrictions on other raw materials, such as bauxite and zinc. Officials in Brussels and Washington had hoped the ruling would encourage Beijing to ease controls on rare-earth exports.
Karel De Gucht, EU trade commissioner, expressed optimism that a negotiated solution could be found following a meeting with his Chinese counterpart, Chen Deming, in Beijing.
“From the general response they gave me, they indicated that they understand they cannot have a policy for exports different from that for domestic trade,” said Mr De Gucht.
While EU officials insist all options remain on the table, Mr Chen said on Thursday that he was “not worried” about a possible WTO ruling on rare earths.
Europe’s manufacturers have grown nervous as China, which produces more than 90 per cent of rare earths, has moved to tighten exports over recent years. They fell 40 per cent last year to 30,259 tonnes, according to the European Commission.
Rare earths prices have soared this year. Chinese officials say environmental concerns have prompted widespread mine closures.
After months of lobbying from Brussels, Washington and Tokyo, China on Thursday released new quota figures that would keep exports of the strategic materials on a par with last year’s level.
EU officials and traders contend that the new quota amounted to a decrease because it was recently amended to include “ferroalloys”, which contain rare-earth metals.
“This is highly disappointing,” a spokesman for the European Trade Commission said. “The EU continues to encourage the Chinese authorities to revisit their export restrictions policy to ensure there is full, fair, predictable and non-discriminatory access to rare-earth supplies as well as other raw materials for EU industries.”
Last week a World Trade Organisation panel ruled against Chinese export restrictions on other raw materials, such as bauxite and zinc. Officials in Brussels and Washington had hoped the ruling would encourage Beijing to ease controls on rare-earth exports.
Karel De Gucht, EU trade commissioner, expressed optimism that a negotiated solution could be found following a meeting with his Chinese counterpart, Chen Deming, in Beijing.
“From the general response they gave me, they indicated that they understand they cannot have a policy for exports different from that for domestic trade,” said Mr De Gucht.
While EU officials insist all options remain on the table, Mr Chen said on Thursday that he was “not worried” about a possible WTO ruling on rare earths.
Europe’s manufacturers have grown nervous as China, which produces more than 90 per cent of rare earths, has moved to tighten exports over recent years. They fell 40 per cent last year to 30,259 tonnes, according to the European Commission.
Rare earths prices have soared this year. Chinese officials say environmental concerns have prompted widespread mine closures.
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