China Raises Rare Earth Export Quota

Chinese authorities announced its second batch of rare earth export quotas for this year, totaling 15,738 tons.

The quota is almost double the corresponding caps set last year.

CRI's Damin has the details.

The announcement of the quotas coincides with China-EU trade talks in Beijing, and comes just a week after the WTO ruled against Chinese export curbs on nine raw materials.

Some have argued that the ruling has prompted both European and US officials to call on the Chinese side to increase its rare-earth exports.

But Chinese Commerce Minister Chen Deming says he is not concerned about any possible WTO challenge to China's rare earth restrictions.

"WTO hasn't made any rulings against the rare earth issue. It actually hasn't even entered the WTO stage. They are only suggestions from some experts and they are of two sides, both agreed and disagreed. I am not worried because we have already had some negotiations."

China reduced export quotas for the first batch of rare earth this year by 11 percent in a bid to secure the sustainable development of the industry.
But the total export quotas for the whole year remain the same level as last year.

China produces more than 90 percent of the world's supply of rare earth, even though it has just 36 percent of global reserves.

While rare-earth extraction can be lucrative, it is also seen as particularly harmful to the environment.

Yao Jian, spokesman for the Ministry of Commerce, says China will make more efforts to better regulate its rare earth industry.

"As it known to all the export of rare earth is not isolated. It connects with the mining, smelting and production of the mineral. We will further standardize the export of rare earth by applying a set of environmental and smelting standards to export enterprises. Also, we aim to achieve a balance between domestic rare earth production, consumption and its export."

Insiders estimate that China produced more than 120,000 tons of rare earth last year. Among them 34,600 tons are used for export.

Rare earth, a group of 17 minerals, are vital for the industries of high-end electronics, defense and renewable energy.

For CRI, I'm Damin.