China denies claims of rare-earth stockpiling

2011-04-02 10:10:25 source:Global Times
\
 

An official denied reports Tuesday that China will ban the export of rare-earth minerals used in clean energy products and superconductors, in a move to ease deepening strain in the international community.


Wang Caifeng, the deputy director of China' s Ministry of Industry and Information Technology (MIIT), stated China has no intentions of hoarding rare-earth minerals and values foreign investment in the industry.


China also strives to smooth international tensions by claiming that limiting rare-earth output due to environmental concerns would not dramatically affect trade figures.


Rare-earth elements are non-renewable strategic resources widely utilized in cutting-edge technology industries. It is a key material in manufacturing batteries of hybrid vehicles, energy-efficient lights, superconductors, and other high-tech equipment.


China is the largest rare-earth resource producer, providing 95 percent of the world' s rare earth metals, according to AP.


Nevertheless, over-exploitation and lack of supervision have resulted in a marked price decline in the international market. Reserves of rare-earth have diminished from 88 percent of the world' s total a decade ago to 52 percent in 2008, while exports soared 10 times high, according to China Daily.


The Rare-Earths Industry Development Plan 2009 to 2015, drafted by MIIT and to be implemented starting from 2010, highlights the severity of the problem by stating that the security of China' s rare-earth industry is under threat by the surging demand for exports.


The government, accordingly, adopted a number of measures to address the issue by devising plans to strengthen administration of rare-earth quotas, improve management and consolidate enterprises to enhance competitiveness.


The cuts in exports have stirred concerns among the international community over their ramifications on the industry. The United States and the European union     lodged a complaint to the World Trade Organization in June criticizing China' s intensifying control of exports, according to AP.

Related News