China denies reports it will cut exports of rare-earth elements (key metals for military technology)

[Turborama]

Source: LA Times

Reporting from Beijing — China on Wednesday denied reports it would slash exports of rare-earth elements next year, saying it was still formulating a plan to protect its supply of the valuable material needed in advanced industrial products.

The Chinese Ministry of Commerce was responding to an article published in the state-owned China Daily that reported Beijing would tighten its virtual monopoly on rare earths by cutting exports 30% in 2011.

Foreign governments have been reviewing their reliance on Chinese rare earths since China reportedly halted exports of the metals to Japan during a tense maritime dispute.

The move raised fears that Beijing would use its stranglehold on the market as a way to wield economic sanctions, a charge rejected by Chinese Premier Wen Jiabao this month. "China is not using rare earths as a bargaining chip," Wen said.

Read more: http://www.latimes.com/business/la-fi-china-metals-20101020,0,4308041.story

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