reuters: china vows not to use res as leverage

FYI

(Reuters) - China said on Thursday it will not use its dominance of rare earths supplies as a "bargaining tool" with foreign economies, and the United States said it would welcome clarification of Beijing's policy on the high-tech ores.

China has slashed export quotas and reduced shipments to Japan, igniting international concern that it could use rare earth exports as an economic or political lever. Prices have spiked and mining firms are rushing to develop sources of the minerals outside China.

The U.S. and European Union this week said they were pressing for solutions to fears that China was choking supply of the substances used in lasers, computers and superconducters among other applications, and the issue is expected to figure at next month's G-20 summit.

Chinese Ministry of Industry and Information Technology spokesman Zhu Hongren said Beijing sought international cooperation.

"China will not use rare earths as an instrument for bargaining," he told a news conference on Thursday. "Instead, we hope to cooperate with other countries in the use of rare earths on the basis of win-win outcomes and jointly protecting this unrenewable resource."

The ministry is one of several in China that oversee rare earths.........

Link:
http://www.reuters.com/article/idUSTRE69R12Y20101028