MNI POLICY: China Warns Over Rare Earth Exports

     BEIJING(MNI) - China would find it "hard to accept" that a country

importing Chinese rare earths should also try to curb its development, the

Ministry of Commerce said Thursday, as investor concern grows that Beijing could

use its control over much of the world's supply of key mineral ingredients in

high-tech products as a weapon if its trade dispute with the U.S. turns ugly.

     Here are some highlights from the ministry's regular press conference:

     --"We are willing to satisfy reasonable need from all nations in the world

for rare earths," ministry spokesman Gao Feng said, while noting that China is

the largest supplier of the minerals, "But if any country wants to take

advantage of products which are made from rare earths exported from China and

curb our development, it would be hard for us to accept."

     --Gao's comments differed from last week's, when he stressed that China

would not impose additional restrictions on rare earth exports.

     --China will certainly retaliate if the U.S. continues to increase tariffs

on around $300 billion of Chinese exports to the U.S., he stressed, reiterating

that U.S. protectionist measures are harming global economic development.

     --China will protect the legal rights of all foreign companies, and

continue to improve the business environment, Gao said, without responding

directly to a reporter's question about whether China will impose restrictions

on Apple's activities in the country.

     --China doubts the sincerity of the U.S. ahead of further trade talks, Gao

said, adding that U.S. moves to "constantly escalate trade frictions and expand

them to other fields seriously damages the foundation and atmosphere of

negotiations. The responsibility is completely on the U.S. side."

     --"Progress in China-U.S. trade negotiations depends to a large extent on

U.S. attitudes and sincerity. Talks can only continue on an equal and

mutually-respectful basis."

     --Maintaining economic stability would be the best contribution China can

make to global economic growth, Gao said.

     --Condemning U.S. tariff increases and restrictions on Chinese tech

companies such as Huawei, Gao said China will retaliate, without providing

details.

     --The ministry criticised the U.S. block on appointments of World Trade

Organization appeals judges.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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