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China imposes more restrictions on vital ac raw materials

FURTHER air conditioning product price rises are feared following China's imposition of further production controls and export restrictions on certain raw materials vital to the industry.
On Monday, the Chinese government's Xinhua News Agency reported that Ganzhou, the country's leading producer of the rare earth mineral dysprosium, has suspended production at three mines in Jiangxi Province. Dysprosium is used extensively in the production of high powered magnets used in compressors.

Product manufacturers are concerned that reduced exports from China would lead to supply shortages for the metals and price hikes on products that use them.

The Chinese government has also announced that it is to appeal a World Trade Organization ruling that its restrictions on export of some raw materials, including fluorspar used in the production of HFC refrigerants, were illegal.

The complaint against China's export restrictions was originally made in June 2009 by the USA, EU and Mexico saying the restrictions gave an unfair advantage to China's domestic producers and raised prices on the global market.

China has claimed that its measures are in line with the sustainable development objectives promoted by the WTO.

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