China asks Korea not to supply products using rare earths to US defence firms, paper reports

A worker at the Jinyuan Company's smelting workshop, prepares to pour the rare earth metal Lanthanum into a mould near the town of Damao in China's Inner Mongolia Autonomous Region October 31, 2010. China produces around 90 per cent of the world's rare earths. - Reuters

SEOUL: Beijing recently asked South Korean companies not to ship products containing China's rare earth minerals to US defence firms, the Korea Economic Daily reported on Tuesday (April 22), citing government and company sources.

The report had initially said China's Ministry of Commerce warned Korean companies they could face sanctions if they violated the export restrictions. The ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace and medical equipment, the report said.