China has ended a quota system previously aimed at restricting exports of rare earths, a move in line with a World Trade Organization panel ruling last March.

 

The Ministry of Commerce issued a notice at the end of December that abolished export quotas for rare earths, key elements in defence industry components and modern technology ranging from iPhones to wind turbines. The abolished export quotas also include tungsten, molybdenum and fluorspar.

 

Chen Zhanheng, deputy secretary-general of the China Rare Earths Industry Association, said the removal of the quota system is expected to increase the number of exporting companies and that competition for exports will become fiercer, which in turn is likely to push up the price of the rare earths after prices hit rock bottom last year.

 

From CHINA DAILY