Beijing accused over rare earth export curbs

China has been accused of breaking world trading rules by limiting its exports of materials vital for high-tech industries.

The United States, the European Union and Japan have complained to the World Trade Organisation about the availability of rare earths, minerals essential for making things such as hybrid cars, weapons, flat-screen TVs, mobile phones, mercury-vapour lights and camera lenses.

China has cut its export quotas over several years to cope with growing demand at home.

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US industry officials suggest it is an unfair trade practice, against rules established by the WTO, a group that includes China as a member.

EU Trade Commissioner Karel De Gucht said China’s export quotas and export duties give Chinese companies an unfair competitive advantage, and must be removed.

“These measures hurt our producers and consumers in the EU and across the world,” he said.

China has defended its curbs on production of rare earths as an environmental measure.