China seeks sustainable rare earths measures-premier

Published 10/06/2010, 09:26 PM
Updated 10/06/2010, 09:28 PM

BEIJING, Oct 7 (Reuters) - China's measures to control rare earths exports are geared to "sustainable" exploitation of the minerals, Premier Wen Jiabao said in Europe, while pledging not to impose a complete ban on exports.

China has gradually reduced export quotas for rare earths as part of an effort to keep more of the minerals for domestic industry, a policy that has raised alarm among nations with industries dependent on the minerals for high-tech and military applications.

Most rare earths resources are in China, but attention over the controls has helped fuel financing for new rare earths mines elsewhere in the world.

Wen called for proper control and regulations but said that China will not close the market altogether, according to a Xinhua news agency report late on Wednesday.

"What we pursue is to satisfy not only the domestic demand but also the global demand of rare earth. We should not only stand from the present, but should also look forward to the future," Xinhua quoted Wen as telling the sixth China-EU Business Summit in Brussels on Wednesday.

"If the rare earth minerals were used up, how would the world and China deal with the problem?"

European leaders at the summit pressed Wen on the value of the Chinese currency, and trade and investment concerns including the rare earths export controls, technology theft, counterfeiting and discrimination against foreign firms.

Wen arrived in Italy late on Wednesday, and will meet with Italian leaders on Thursday before travelling to Turkey. (Reporting by Lucy Hornby; Editing by Sanjeev Miglani)

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