China halts flow of rare-earth-metal exports

China displayed the potential leverage of its near-monopoly on key raw materials for renewable-energy equipment when it halted exports of rare earth metals to Japan in retaliation for the detention of a Chinese fishing captain.

The actual stance of the Chinese government was unclear, as some local reports quoted officials denying that action had been taken to halt the flow of the metals, which are used in wind turbines, solar panels and electric vehicles. But media outlets quoted industry sources saying materials bound for Japan were being held up at Chinese ports.

Japan ultimately released the captain of the vessel, which was in a collision with two of its coastguard vessels, but the sabre-rattling underscored the strategic importance of China's dominance of the global market for rare…

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