US and Japan press China on

US Secretary of State Hillary Clinton has called on China to clarify its policy on the export of exotic metals key to cutting-edge global industry.

Opening a two-week Asia-Pacific tour aimed at cementing ties with allies who are wary of Beijing's increasing assertiveness, Mrs Clinton yesterday addressed a primary point of friction between China and Japan.

She said recent Chinese restrictions on the sale of rare earth minerals - essential to producing hi-tech devices such as cellphones, missiles and solar energy panels - served as a "wake-up call" for the industrialised world, including the United States and Europe Community, which has largely abandoned its production in favour of cheaper exports from China.

"I would welcome any clarification of their policy and hope it means trade and commerce around these important materials will continue unabated," she said at a news conference after meeting with Japanese Foreign Minister Seiji Maehara in Honolulu, Hawaii.

China responded it "will not use rare earths as a bargaining tool".

Zhu Hongren, a spokesman for the Ministry of Industry and Information Technology, said, "Rather, on the basis of co-operation, development and a win-win outcome, we will have co-operation with other countries in the use of rare earths because it is a non renewable energy resource." He refused to comment on when exports would resume.

Mrs Clinton and Mr Maehara both said China's stifling of the supply meant the international community would have to look for other sources of rare earths.

China produces 97 per cent of the world's supply, something Mr Maehara said "was not appropriate". Even if the current situation is resolved, he said it was critical to diversify production.

"This served as a wake-up call (about) being so dependent on only one source," Mrs Clinton said, calling rare earths both "commercially and strategically" essential. "The entire world has to seek additional supplies in order to protect the important production needs that these materials serve."

Japan has been urging China to resume exports of rare earths. Japanese companies say Beijing has blocked shipments since 21 September, in possible retaliation for Tokyo's arrest of a Chinese fishing boat captain near disputed islands in the East China Sea.

Many see China's action as indicative of its growing aggression in dealing with such disputes.Some nations are seeking reassurance from the US, the traditional dominant power in the Pacific Rim, that it will remain a major player.

Mrs Clinton said a satisfactory Chinese clarification of its position on mineral exports "may shorten that discussion, but there is a lot to talk about", particularly to prepare for a state visit to the US by Chinese President Hu Jintao in January 2011.

Mrs Clinton's trip to Hainan - a last-minute addition to the itinerary - is loaded with symbolism for the Chinese.

The island is a powerful reminder of Chinese military might, hosting an array of intelligence and espionage facilities of the People's Liberation Army. It was where an American spy plane was forced to land in 2001 after it collided with a Chinese fighter jet.

The 24 crew members were held for 11 days until the administration of President George W Bush apologised.

Mrs Clinton will also visit Vietnam, Cambodia, Malaysia, Papua New Guinea, New Zealand and Australia.