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EU lawmakers criticize China for rare earth restrictions before summit

The European Parliament condemned China Thursday for its export restrictions of rare earths, and demanded that the European Union reject any attempt by Beijing to force concessions out of the bloc.

Two weeks ahead of an EU-China Summit at which rare Earths will be a major topic, EU legislators backed a resolution saying that China's actions were unjustified and had a coercive intention and that its "quasimonopolistic position" provided it with enormous leverage.

The European Parliament passed the motion with 523 votes in favor, 75 against and 14 abstentions. The motion, although not binding, is influential because the European Parliament is the only directly elected institution in the EU.

China, which produces 90% of the rare earth magnets that are used in automobiles, home appliances and other products, has imposed export restrictions since early April. Exporters must obtain licenses in Beijing.

The motion in parliament urged China, amid a trade conflict with the United States to lift restrictions. Beijing, however, had set up "green lanes" for European firms to make the process easier.

Last week in Berlin, China's foreign minister Wang Yi played down European concerns, saying that it is standard practice to restrict exports of goods with a potential military use. However, Europe's requirements could be met by submitting applications.

The EU legislators also called for the European Union's 2030 targets to be backed up with a budget and to determine minimum levels of strategic stock of rare earths. (Reporting and editing by Philip Blenkinsop, Aidan Lewis, and Milan Strahm)

(source: Reuters)