This Is Getting Serious .................China halting key minerals to US: report
(AFP)–2 hours ago
WASHINGTON — China has halted some shipments to the United States ofrare minerals vital to industry due to anger over a US probe, seizing ona tactic first used against Japan, The New York Times said Tuesday.
Thenewspaper, quoting industry officials, said that China quietly stoppedshipments of so-called rare earths earlier this week in response to theUS investigation into alleged Chinese subsidies into its greentechnology sector.
"The embargo is expanding" beyond Japan, the newspaper quoted an anonymous industry official as saying.
MajorJapanese and US companies all make use of rare earths, a group of 17elements in high-tech products from iPods to hybrid cars. China controlsmore than 95 percent of the global market.
Japanese industry saidthat Beijing took similar action last month after Tokyo seized thecaptain of a Chinese fishing boat in waters disputed between the twocountries.
Japan eventually released the captain, triggeringcriticism by some conservative lawmakers who accused Prime MinisterNaoto Kan's left-leaning government of emboldening China.
The rowover rare earths has led to calls in major economies to diversity awayfrom China, fearing that Beijing will increasingly wield its economicclout for political reasons.
The United States announced Fridaythat it would investigate charges that China has handed out hundreds ofbillions of dollars in illegal subsidies in a bid to dominate thefast-growing green-energy sector.
The probe comes after the UnitedSteelworkers union petitioned trade officials to investigate practicesit claims contravene World Trade Organization rules and cost Americanjobs.
China denied the charges and hit back that the United Stateswas also subsidizing green firms. China has also denied any officialcampaign to restrict exports of rare earths, suggesting that companiesacted on their own.
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