China blocks vital exports to Japan

The Chinese government has blocked exports to Japan of a crucial category of minerals used in products like hybrid cars, wind turbines and guided missiles. Industry executives said that mainland Chinas customs agency had notified companies that they were not allowed to ship to Japan any rare-earth oxides, rare-earth salts or pure rare-earth metals, although these shipments are still allowed to go to Hong Kong, Singapore and other destinations. A Chinese Commerce Ministry spokesman declined to discuss the country’s trade policy on rare earths. A senior Japanese Foreign Ministry official, who also asked to remain anonymous, said the Japanese government has not yet received any notice from China about the suspension. The official said, however, that the government has repeatedly asked China not to restrict its exports of rare-earth elements, citing the severe consequences such an action would have on global production and trade. (September 24, 2010)