China says it is reducing exports of rare minerals used in high-tech devices like mobiles and TVs.
97% of the world’s so-called “rare earth elements” come from China.
But despite massive demand exports are being cut by more than 10% during the first half of 2011.
Big companies like Sony of Japan says the move is a hindrance to free trade and that it would work to reduce its reliance on Chinese supplies.
Demand for rare earths is set to more than double to 250,000 tonnes by 2015 according to industry estimates.
However the Ministry of Commerce in China said “Concerned parties should not estimate full-year quotas for rare earth minerals just by looking at the first set of quotas”.
Final quotas will take into account domestic production and demand both at home and abroad according to the ministry.
