Chinese rare earth regulations under fire

Beijing (CNS) -- China provided a huge amount of its rare earth resources to other countries very cheaply in the 1980s and 1990s, and views the recent requests of some developed countries to continue to offer these bargains over the long haul as quite irrational, a Chinese expert said on Tuesday.

Zhang Anwen, deputy secretary-general of the China Rare Earth Society, said at a seminar that the accusation made against China's regulations on its rare earth exports is offensive. He refers to some countries at the WTO maintaining that China is choking off supplies.

Zhang expects a sound, seamless pricing mechanism will help to protect the environment and reserve ecosystem, and whereas prices for rare earths used to be fixed in a low range, it has simply become necessary to raise them.

On March 13, the United States, European Union and Japan teamed up to bring a joint case against China to the WTO over its alleged export controls on rare earth metals. They claim shortages are hurting their own domestic manufacturers.

Over-exploitation has depleted China's rare earth resources over the past three decades, as the country now supplies more than 90 percent of all the rare earth metals used in the world. Its rare earth reserves have dropped sharply to about one-third of the world's total, compared to 90 percent three decades ago.