China tightens grip on key minerals

last updated 8 January 2015

In a move likely to heighten tensions with the West, China has limited exports of crucial minerals to the U.S. and Europe, officials said this week. China controls 95 percent of the world’s supply of rare earth minerals, which are essential to the manufacture of a range of high-tech products—from smart bombs to cell phones and wind turbines. China’s action follows a recent announcement by U.S. trade officials that they would investigate allegations that China is illegally subsidizing its green energy sector. China blocked shipment of rare earths to Japan last month after a territorial dispute between the nations. Beijing denies that any embargo on rare earths exists.