Rare Earths.doc
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Rare Earths.doc

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BeijingdefendsexportcurbsafterUSfilescaseatworldtradebodyProtectingtheenvironmentandtheefficientmanagementofresourceswerethefactorsthatshapedChina'srareearthspolicyinaccordancewithglobaltraderules,theMinistryofCommercesaid.TheministrywasrespondingonTuesdaytotheUSfilingacase,alongwithJapanandtheEU,attheWorldTradeOrganization(WTO)againstChina'sexportcontrolsoverrareearths,whicharecriticalforthemanufacturingofhigh-techproducts.USactionagainstChina'srareearthsexportcurbs,andtherecentsettingupinWashingtonofatradeenforcementunitthatanalystsbelievetargetsChina,willsoureconomicrelations,theministrysaid."Weknewit(thecase)wouldcomesomeday.NowithascomebutChinahaslongbeenreadyforit,"LiChenggang,headoftheministry'sdepartmentoftreatyandlaw,toldChinaDaily."TheWTOhasrepeatedlyrecognized,andagreed,onthelegitimacyofChina'sgoalofprotectingtheenvironmentandpreventingadrainofrareearthsresourcesthroughexportmanagement,"hesaid.AtanewsbriefingonTuesday,LiuWeimin,MinistryofForeignAffairsspokesman,alsosaidthattherewerenogroundstoblameChina."ChinawillcontinuetomanageexportsandmakesureacertainvolumeofrareearthsareavailableforexportaccordingtotheWTOrules."Chinaproducesabout97percentoftheworld'srareearthsbutdomesticreserveshavebeendepletedsharplyoverthelast50years.AdisputewithTokyoin2010,afterJapanillegallydetainedaChinesetrawlercaptain,disruptedexportstoJapan.Chinahasrecentlyloweredexportquotasforrareearths,whichcausedthemainbuyers,theUS,theEUandJapan,topressureChinatoloosencontrols.Butpressurewillnotwork,Lisaid.Chinahasnointentionofchangingexportpolicyanddemand,bothdomesticandforeign,istreatedequallyandisbasedonWTOrules,Lisaid."ChinawillcontinuetostrengthenandimproveexportmanagementandstrictlyabidebyWTOrulesandregulations."ThecasesfiledattheWTOcomehotontheheelsoftheUSestablishinganinteragencytradeenforcementunittoseewhetheritsmajortradepartners,includingChina,playby,whatitterms,therules.Theunit,setupatacostof$26millionandemployingupto60people,willfurtherfueltradefrictionbetweent