China denies reports of rare-earth export cutbacks

The Chinese government is pushing back against media reports that it is imposing major new restrictions on the export of rare-earth minerals that are vital components of wind turbines and other clean-energy technologies.

Word of new export quotas and even embargoes threatens to further inflame trade tensions between the U.S. and China. The Obama administration last week announced a wide-ranging probe of China’s energy-related trade practices.

But Bloomberg and other outlets report Wednesday that official Chinese sources are denying claims of major new restrictions on the rare-earth materials from the world’s dominant supplier.

“China pledged to maintain supplies of rare earths and signaled exports of the ingredients used in electronics, wind turbines and smart bombs may rise next year,” Bloomberg reports.

“The Commerce Ministry denied reports in the New York Times and China Daily that the government plans further export cuts and has extended an embargo of Japan to include the U.S. and Europe. ‘China will continue to supply rare earth to the world,’ the ministry said in a faxed response today,” the Bloomberg piece adds.