China restricts mining of rare earth resources

China will significantly restrict the mining of rare earth resources in the country. Beijing has thus openly shown its intent to use such resources, which are essential to the production of high-tech products including semiconductors, as economic weapons.

According to China’s state-run Xinhua News Agency Monday, the National People’s Congress of China decided to toughen regulation of permission and approval for mining of rare earth resources in a meeting Saturday to protect the natural environment around mining areas.

In October last year, China announced standards for "emission of rare earth industrial waste” and presented strict guidelines on the emission of polluted water from rare earth resource mines. Additionally, Beijing decided in principle to reject any application for mining at the mines from 2010 to June 30 this year.

The Chinese legislature`s decision to restrict the mining of rare earth resources again is seen as Beijing’s bid to reconfirm its previous stance, reduce production by imposing extra environmental fees, and thus raise international prices. China’s State Council or provincial governments are expected to take specific measures to that effect.

The U.S. and Europe have criticized China for having built a “Rare Earth Great Wall” by restricting the exports of rare earth resources under the pretext of environmental protection. In a territorial dispute with Japan over the Senkaku (Diaoyu) islands in 2010, China cut off exports of rare earth resources to its neighbor.

koh@donga.com