China has basically maintained its 2011 export quota for rare earths at last year's level, and its commerce minister played down concerns about potential WTO action challenging the country's curbs on the raw materials.
China has allotted the second batch of export quotas of 15,738 tons to 26 companies, the Ministry of Commerce said yesterday. This put the full-year quota at 30,184 tons, compared with last year's quota of 30,258 tons.
Usually two rounds of permits are issued annually.
China has moved to curb production and exports of rare earths - a group of elements vital in the manufacture of hybrid cars, wind turbines and guided missiles - to protect the environment.
China supplies more than 90 percent of global rare earths. The restrictions forced users in the United States and Japan to seek other supplies.
The World Trade Organization last week ruled that China broke trade rules by limiting exports on a number of industrial raw materials such as bauxite and coke, a verdict that could encourage the US and the European Union to force China to increase rare earth exports.
Minister of Commerce Chen Deming said yesterday that he's not worried about possible WTO actions challenging China's rare earth policy.
"The rare earth issue has not entered the WTO stage," Chen said at a joint briefing in Beijing with EU Trade Commissioner Karel De Gucht, adding that China has had some negotiations with the EU.
China's 2010 quota of 30,258 tons was 40 percent below 2009's, but customs data showed 39,800 tons were actually exported last year, excluding smuggling.
A Shanghai Metals Market note said the 2011 quota will bolster China in dealing with foreign accusations. Banks such as Goldman Sachs earlier said China may further cut quotas this year.
China has said it would take into account its rare earth production, domestic and overseas demand as well as sustainable development when setting quotas.