China to create rare-earths giant by joining three state companies

Beijing to tighten grip on market with SOE controlling 70% of domestic production

20211023 China rare earth mining

A rare-earths mine in Inner Mongolia, China. The country is the world's largest producer of the metals. © Kyodo

SHUNSUKE TABETA, Nikkei staff writer

CHONGQING, China -- China will restructure three rare-earths producers to create a state-owned company with a nearly 70% share of the domestic production quota for the metals that are essential to manufacturing high-tech products.

The move is aimed at accelerating the development of resources and processing technology, as well as strengthening Beijing's control over the mining sector in anticipation of prolonged trade tensions with Washington.

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