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China Says It Won't Use 'Rare Earth' Metals as Bargaining Chip

   VOA News 07 October 2010
   Chinese  Prime  Minister  Wen  Jiabao  delivers  a  speech  during the
   EU-China Summit meeting at the EU headquarters in Brussels, 6 Oct 2010

Photo: AFP

   Chinese  Prime  Minister  Wen  Jiabao  delivers  a  speech  during the
   EU-China Summit meeting at the EU headquarters in Brussels, 6 Oct 2010

   China says it will continue to control exports of crucial "rare earth"
   minerals,  but  will  not impose an embargo or use them as a political
   "bargaining chip."
   Premier  Wen  Jiabao  made  the  remarks late Wednesday in a speech to
   European businessmen.  The text was released Thursday by the official
   Xinhua news agency.

   China  accounts  for  more than 95 percent of the world's rare earths,
   which  are  needed  to  make  high-tech products like iPods and hybrid
   cars.  China cut export quotas on the vital minerals by 72 percent in
   July.
   Mr. Wen said in Brussels that China was acting to ensure that supplies
   do  not run out.  He said China will continue to exercise "management
   and control" over the industry, but "there won't be any embargo."

   [VOA's Kate Woodsome interviews Christine Parthemore, Center for a New
                                                      American Security:]

   Fears  that  China  might  use rare earths as a political weapon arose
   last  month  during a dispute over Japan's arrest of a Chinese fishing
   captain near some disputed islands in the East China Sea.
   Japanese  traders said rare earth shipments from China had been halted
   and  Japanese Economy Minister Banri Kaieda said Beijing had imposed a
   "de  facto"  ban  on exports.  China denied it had stopped exports of
   the minerals.
   Japan  has  begun  seeking  other options for obtaining the materials,
   which  also  have  military applications.  A Japanese delegation will
   visit Mongolia this month to investigate possibilities for mining rare
   earths there.

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