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China rare earth customs procedures improved: Japan

By Yoko Nishikawa

TOKYO (Reuters) - China's customs procedures for shipments to Japan of rare earth minerals vital for high-tech products are improving, Japan's trade minister said, nearly two months after exports stalled as a territorial row erupted between Asia's two top economies.

Chinese customs officials imposed broad shipment restrictions on rare earth exports to Japan after it detained a Chinese trawler captain whose vessel collided with Japanese patrol boats near disputed islands in the East China Sea in September.

A survey by the Japanese trade ministry on more than 30 Japanese firms this week showed that 16 companies out of 27 that gave detailed responses said there had been signs of improvement in China's customs procedures for rare earth shipments to Japan.

"I think the Chinese understand that stalled exports of rare earth to Japan would in turn have a big impact on China's production of computers," Japanese Trade Minister Akihiro Ohata told reporters on Friday.

"I strongly hope that rare earth shipments to Japan will get back to normal."

Ohata said the improvement in China's customs procedures is in line with comments by Zhang Ping, the head of China's National Development and Reform Commission, who told him last weekend that the issue would be resolved soon.

"I strongly hope that shipments will start moving next week," Ohata said, adding that he also hoped the issue would be resolved soon as suggested by Zhang.

Tensions remain between Japan and China despite the release of the Chinese trawler captain. The two countries' leaders, however, signaled that a thaw might be in store at a summit on the sidelines of an Asia-Pacific leaders' gathering in Japan last weekend.

China produces 97 percent of the world's rare earth metals, which are used in the making of high-tech goods and defense products. It set 2010 export quotas 40 percent lower than 2009 levels, raising alarm among buyer nations about supplies.

(Editing by Chris Gallagher)

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