China using rare earths as trade weapon, feels US

The US administration has come to the conclusion that Beijing most likely curbed exports to Japan due to political reasons and has called upon that country not to use trade controls over lucrative rare earth minerals as a "weapon."

China produces more than 95 per cent of rare earth products, which are critical to manufacturing 21st-century goods from iPods to low-emission cars to wind turbines.

Global prices of rare earth minerals have skyrocketed after it recently put stringent curbs on their exports, citing environmental concerns.

"All we're asking for is that they not use rare earth products as a trade weapon," Jon Huntsman, the US ambassador to China, told `The Charlie Rose Show' on US public television in a weekend interview.

Japanese industry said China temporarily cut off exports earlier this year during a flare-up in a territorial row between Asia's two largest economies. China denied that the government imposed restrictions.

"I think in the example of Japan it could be argued that in fact it was used as a trade weapon," Huntsman said.