Ohata urges China to normalize rare earth exports to Japan+

TOKYO, Oct. 24 Kyodo -
Japanese trade minister Akihiro Ohata said Sunday that he pressed Chinese Vice
Commerce Minister Jiang Yaoping to normalize the stringent customs inspections
on China's rare earth exports to Japan and avoid drastically reducing export
quotas.
Jiang, who is in Tokyo to attend a forum to step up energy-savings cooperation
between the two countries, reiterated China's stance that there is no embargo
on the resources, but showed willingness to make efforts not to adversely
affect economic ties, according to Ohata.
Jiang was also quoted as saying in his meeting with Ohata that China has
reinforced customs inspections to ''counter smuggling.''
Ohata stressed that the rare earth issue needs to be discussed by the leaders
of the two countries, who may have an occasion to meet bilaterally in Hanoi on
the sidelines of the Association of Southeast Asian Nations-related meetings
later in the month.
The dispute over stagnant exports of rare earth minerals, which are vital for
high-tech products, emerged as bilateral ties soured after a ship collision
incident last month near the Senkaku Islands in the East China. The islands are
administered by Japan, but claimed by China.
China said in July that it will reduce export quotas for rare earths in 2010 by
40 percent from a year earlier, while a Chinese newspaper recently reported
that China will reduce the quotas ''by 30 percent at most'' in 2011 from
year-earlier levels.
Jiang told the Japanese economy, trade and industry minister the reason behind
China's control of export quotas is concern that the resources may ''run out in
10-15 years if they are used at the current pace.''
Ohata showed understanding for such a view. But he asked China to revisit the
idea of drastically reducing the quotas because it would affect all companies
in the world.
Ohata also told Jiang that Japan is seeking to develop technologies that would
enable recycling the resources, which could be shared between the two
countries.
Japan is trying to reduce its heavy dependence on China, which accounts for 97
percent of the global output of rare earth minerals. Japan is almost 90 percent
dependent on China for its supply, according to the Ministry of Economy, Trade
and Industry.
During a speech at the outset of the forum, Ohata said, ''Japan and China have
various issues, but it is essential that both countries make efforts to deepen
our strategic, mutually beneficial relations from a broader standpoint.''
Zhang Xiaoqiang, vice chairman of China's National Development and Reform
Commission, also attended the forum.
Ohata said he held bilateral talks with Zhang on Thursday in Tokyo on similar
issues and received the same response. He explained that he was not able to
talk about the meeting to the media because of ''security reasons.''
The Japan-China energy-saving and environmental forum has been held every year
since 2006, with both the public and private sectors participating in the
event.
At this year's forum, the two sides agreed on a total of 44 projects, including
those related to recycling and advanced ''smart grid'' power transmission
network.
==Kyodo
2010-10-24 21:32:43


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