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China rare earths group supports counter-measures against U.S. 'bullying'

Wed, 07th Aug 2019 13:53

By Tom Daly

BEIJING, Aug 7 (Reuters) - China's rare earths associationsaid it would support Chinese counter-measures in the escalatingtrade row with the United States, which it accused on Wednesdayof "bullying".

The Association of China Rare Earth Industry issued astatement after a special working meeting on Monday to discussthe "guidance" given by Chinese President Xi Jinping during avisit to a rare earth plant in Jiangxi in May.

Xi's visit stoked fears China would use its dominance overproduction of rare earths, a group of 17 chemical elementsprized for their use in consumer electronics and militaryequipment, in the escalating trade war, although no restrictionson supplies have so far been announced.

U.S. President Donald Trump said last week he would imposefurther tariffs on another $300 billion of Chinese goods,although a previous lists avoided rare earths, for which theUnited States relies heavily on China.

The Chinese association rarely comments on the trade war andmade no mention of export restrictions, but said all attendeesat the meeting agreed that U.S. tariffs on Chinese goods wereaimed at suppressing China's development and amounted tounilateralism, protectionism and "trade bullying behaviour."

"We express our firm opposition," it said, adding thatChinese rare earth companies should actively expand overseasmarkets, as well as the domestic market.

"The cost of tariffs imposed by the United States should beborne by the U.S. market and consumers," the association said.

China customs is due to report its July rare earth exportdata on Thursday.(Reporting by Tom Daly;Editing by Alexander Smith)

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