Clinton to Press China on Rare Earth

Clinton to Press China on Rare Earth
U.S. Secretary of State Hillary Clinton said she will press China this week to clarify its policy on the exports of rare-earth minerals amid fears Beijing could use them as a political weapon.

Mrs. Clinton, en route to Asia for a key regional summit, stressed following a meeting with her Japanese counterpart in Hawaii that recent Chinese restrictions on sales of the important commercial inputs must serve as a “wake-up call” for the U.S. and its allies to diversify their sourcing.

China is estimated to supply about 97% of the global demand for these metals, which are essential for the production of computers and other electronic products.

“Because of the importance of these rare-earth minerals, I think both the minister and I are aware that our countries and others will have to look for additional sources of supply,” Mrs. Clinton said at a joint press conference with Japanese Foreign Minister Seiji Maehara.

Tensions between China and Japan have increased in recent months, fueled by a dispute over islands jointly claimed by the two Asian nations. In July, Beijing announced a drastic curtailment of its export quotas for these minerals, as well as a crackdown on smuggling, which began to be felt in subsequent months. China says the limits reflect its growing environmental awareness, are perfectly legal and won’t be used as a policy tool. The moves nevertheless raised fears that China was seeking to pressure Japan and other industrial powers.

In Beijing Wednesday, China’s Foreign Ministry said it wouldn’t use its dominance in rare-earth minerals as a “bargaining tool” with competing nations. Mrs. Clinton said she would seek to clarify this position during her scheduled bilateral meeting Saturday with China’s state councilor, Dai Bingguo, on China’s Hainan island.

“I would welcome any clarification of their policy and hope that it means trade and commerce around these important materials will continue unabated and without any interference,” Mrs. Clinton said.

Mrs. Clinton said she would also use her meeting with Mr. Dai to prepare for Chinese President Hu Jintao’s upcoming state visit to the U.S.

Mrs. Clinton is embarking on a seven-nation Asia-Pacific tour that U.S. officials say serves as a symbol of the Obama administration’s commitment to remaining a regional diplomatic and economic player. On Saturday the U.S. secretary of state will join Asian leaders for the East Asia Summit in Hanoi.

Mrs. Clinton’s Asia trip didn’t initially include a stop in China. But U.S. officials said the wide range of issues currently facing the U.S.-China relationship made it imperative for the chief American diplomat to hold additional discussions with Mr. Dai.

Washington and Beijing have jostled in recent months on issues ranging from the value of China’s currency to territorial disputes in the South China Sea.

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