China abandons rare earths export quota system

BEIJING - In line with a World Trade Organisation panel ruling last March, China has officially abolished a quota system previously designed to restrict exports of rare earths. A notice was issued at the end of December that the Ministry of Commerce abolished export quotas.

Rare earths are key elements in defence industry components and modern technology ranging from iPhones to wind turbines. In addition, abolished export quotas include tungsten, molybdenum and fluorspar.

Chen Zhanhang, Deputy Secretary-General of the China Rare Earths Industry Association, was quoted as saying “the removal of the quota system is expected to increase the number of exporting companies and that competition for exports will become fiercer, which in turn is likely to push up the price of the rare earths after prices hit rock bottom last year.”

 Under the previous export quotas, only 28 rare earths producers were allowed to operate: Now, any company with an export contract is eligible. www.webershandwick.cn (ATI).