Strasbourg, 20/10/2010 (Agence Europe) - On Wednesday 20 October, the European Commission refuted press declarations by representatives of European industry regarding China blocking the export of rare earths to the EU. “At this time, we cannot confirm claims made by European industry officials in media reports of China blocking rare-earth shipments to the EU. We recall that Chinese Premier Wen Jiabao stressed at the recent EU-China Business Summit (Ed: 6 October in Brussels,), that China did not intend to take such action or close its market. The access to rare-earths is a key concern for the European Commission and a key element of European industrial policy. We are therefore monitoring the situation closely at this time” explained John Clancy, EU Trade Spokesman for European Commissioner Karel De Gucht, in a press release published on Wednesday morning.
Quoting representatives from US and European industries, the International Herald Tribune provided assurances on Wednesday morning that China had extended the embargo on rare earth exports to the US and Europe. It has been imposing this embargo on Japan since the Chinese-Japanese crisis arising from the inspection on 7 September of a Chinese boat by the Japanese coastguard off islands in the eastern China Sea. These islands are claimed by both countries. On the day before, the New York Times reported that China had discreetly suspended its exports of rare earths to the US, as a protest against an investigation opened by Washington against illegal subsidies paid by Beijing to the Chinese green technologies sector. The New York newspaper, quoting an American businessman, said that the embargo was currently being extended beyond Japan.
China controls 95% of world rare earth reserves. Rare earth consists of a group of 17 minerals used by electronics and car manufacturing industries to produce a large range of hi-tech equipment, ranging from flat screens, lasers and hybrid cars. (E.H./transl.fl)