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By Tu Lei (chinadaily.com.cn)
Updated: 2007-07-26 16:02

Customs figures show that China exported 20,000 tons of rare earth worth US$270 million in the first five months of this year, down 34.1 percent year on year, according to today's Shanghai Securities News.

The decline is attributed to measures such as canceling export tax rebates, implementing export quota, and enhancing environmental supervision, said experts.

Between January and May of this year, China exported 9.421 tons of rare earth to Japan, down 25 percent year on year, accounting for 46.1 percent of the country's total rare earth exports in the period. China also exported 5,548 tons and 4,148 tons to the European Union and the United States, down 32.6 and 43.9 percent respectively.

The export volumes to those three countries and regions accounted for 93.5 percent of China's total exports.

In 2006, the Ministry of Land and Resources stopped issuing new rare earth mining licenses, and implemented mandatory planning policy on rare earth production.

On November 1 of 2006, the government listed rare earth in the Catalogue of Prohibited Commodities of Processing Trade, and increased export taxes on some rare earth products.

Insiders said rare earth loss is still a concern, and the government should limit foreign investment in the industry, protect some rare earth varieties and enhance national resources strategic reserves.