China vows equal treatment in rare earth regulation

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China pledged on Friday it will abide by World Trade Organization rules and apply "same policies" to both domestic and overseas companies in rare earth production, processing and export.

Ministry of Commerce spokesman Yao Jian said Friday China noticed that rare earth prices have kept rising over the past few years after the country adjusted its regulations on the rare earth industry coupled with changes in the international market.

The price rises, however, are conducive to regulating the rare earth industry and protecting the environment, he said at a press briefing in Beijing.

Rare earths, a group of 17 metals, are among the most sought-after resources in modern manufacturing. They are vital materials to make an array of sophisticated products ranging from electric car batteries, wind turbines to aerospace alloys.

China suffers serious environmental pollution from mining the metals. More than 90 percent of rare earths on the international market come from China.

To protect the environment and non-renewable resources, the government has announced various policies, including capping domestic rare earth output, issuing export quotas, setting up tougher emission rules, and clamping down on illegal mining and smuggling.

These policies were created by taking account of domestic production, exports, environment protection and sustainable development, Yao said.

He noted the country will continue efforts to "balance and coordinate" domestic production, consumption and exports of rare earths.

China's rare earth administration policies, however, have sparked complaints from major consumers such as the United States and Japan.

According to the WTO's Article 20, WTO members can impose export restrictions for reasons such as conservation of exhaustible natural resources if such a restriction is made effective in conjunction with restrictions on domestic production or consumption.

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