China to Reduce Rare Earth Exports in 2011

China says it will reduce export quotas for rare earth minerals next year, but only by a small amount. Commerce Ministry spokesman Yao Jian said Tuesday that rare earth export quotas must be reduced to protect the environment and natural resources. He did not specify the size of next year's cut.

China is the world's largest producer of rare earth minerals, which are required for making many high-tech products, including computer components, mobile phones and hybrid cars. But Beijing has reduced exports of the minerals in recent years, saying their reserves are depleting and have to be protected.

Concern over China's control of more than 95 percent of the world's supply of rare earth minerals has grown in the last month, after Tokyo accused Beijing of holding up deliveries to Japan amid a maritime dispute. 

China reacted angrily to the arrest of a Chinese fishing boat captain in early September after his trawler clashed with two Japanese patrol boats in disputed waters in the East China Sea.
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