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China controls about 97% of the world’s rare earth metals (also known as rare earth elements) supply. Rare earth metals are vital inputs into the production of hybrid car batteries, windmills, liquid cristal displays, and many other industrial and military outputs. China is again exerting its control over this precious resource:

China defended its controls on exports of rare earth after Japanese officials raised concerns about supplies of the raw materials used in the manufacture of products from cell phones to radar.

Restrictions on the rare earth industry will help protect the environment, the state-run Xinhua News Agency cited Chen Deming, China’s commerce minister, as saying yesterday at a media briefing during China-Japan economic talks in Beijing.

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