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China expands rare earth export restrictions

China released new rare earth quota figures on Thursday which effectively keep export levels at 2010 levels, despite international calls and a World Trade Organization (WTO) ruling for relaxed restrictions, the Financial Times reported. While the numerical figure is higher than 2010, the inclusion of “ferroalloys,” which contain rare earth metals, means that the scope of the quota has been significantly expanded. The European Trade Commission called the new figures “highly disappointing.” A WTO panel recently ruled against China, arguing that the country’s export restrictions amounted to protectionism. Allegations that China was restricting exports of the metals, of which it produces about 97% of world supply, surfaced in 2010 after a maritime spat with Japan. China’s rare earth exports decreased by 40% last year, according to the European Commission. Prices for the metals have risen dramatically so far this year.

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