China silent about lifting curbs on rare earths as India auto firms grow anxious

China, which holds the global monopoly over the precious rare earth metals needed for manufacturing of phones, automobiles and missiles, continues to play hardball over lifting export restrictions of the precious metals warding off pressures from a host of countries, including, the US, EU and India.

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“China’s export control measures are consistent with universal practices,” Chinese Foreign Ministry spokesperson Lin Jian said responding to a question during a media briefing here on Thursday that Japanese automaker Suzuki has suspended production of its main small cars in Japan because of delays due to rare earth restrictions.

“Such measures are non-discriminatory and not targeted at any particular country,” he said, adding that the question should be directed to competent authorities.

This is the second-time this week that Lin deflected a question on the growing global concerns over the restrictions over exports of Chinese rare earth metals.

Reports from Tokyo on Thursday said Suzuki Motor halted production of its Swift model cars in Japan from May 26 due to China’s rare earth restrictions.

Reports in recent weeks from India too spoke of growing concerns among the automobile manufactures about scarcity about rare earth magnets, which are critical components in electric vehicles (EVs) and even some parts of traditional internal combustion engine vehicles.

Also, China’s export restrictions of the rare earths specially germanium, a critical mineral that is used in manufacturing of semiconductors, fibre optic cables and solar panels, has sparked concerns in India among the respective industries.

According to the International Energy Agency, currently China accounts for 61% of global mined rare earth production, but controls 92% of the global output. China’s exports restrictions of rare earths which were imposed in June last year became stricter since Trump imposed 146% tariffs on Chinese exports.