China grants more quotas for rare earth exports

China has set up a rare earth industry group, the government said Monday, in a bid to streamline the sprawling sector and fend off complaints about Beijing's seemingly monopolistic control.The United States, European Union and Japan last month lodged a complaint with the World Trade Organization, saying China was choking off exports of rare earths to unfairly benefit domestic industries.

China has limited exports of so-called rare earth elements for years, frustrating foreign trade partners who want to access the metals used to make everything from cell phones to weapons systems.  

By Markus Aarnio:China's control of the rare earth market has come under increased scrutiny since 2010. Over the past several years, China has slashed its export quotas of rare earth minerals to cope with their growing domestic demand. U.S.

The head of the World Trade Organization played down a dispute over China's controls on exports of rare earth minerals, saying it was unlikely to escalate into a trade war.The United States, European Union and Japan have lodged a complaint with the WTO against China over its curbs on the shipments of the commodities, which are vital in the manufacture of high-tech goods.But Pascal Lamy Friday said: "Since the dispute settlement has been set up, no trade dispute has generated a trade war. That's the experience of the past.

David Fessler submits:By David Fessler The huge global wall of worry over China’s dominance of the rare earth market is certainly warranted if you’re the CEO of one of the thousands of companies around the world that depend on such material.

China defended its export controls on rare earth minerals on Thursday, saying that they were in line with World Trade Organization rules, after a government move to slash export quotas on rare earths sparked trade concerns

By Michael Terry:I saw the following news item Monday: The United States, Japan and European Union plan to bring a new trade case against China over its export restrictions on rare earth minerals used in a variety of high-tech and clean energy products, senior administration officials said on Monday.

China is considering new export quotas on rare earth alloys, a report said Thursday -- a move that would further restrict shipments of the minerals used in a variety of high-tech industries.The country -- which has a near-monopoly in the industry -- is also mulling separate export quotas for heavy and light rare earths, Dow Jones Newswires reported, citing an unnamed official with knowledge of the plans.The commerce ministry declined to comment on the report when contacted by AFP.