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A spokesman for the Department of industry "China will be not rare-earth as a tool for negotiation," told a press conference "China hopes to mutually beneficial cooperation with other countries on the use of the land of rare... and at the same time protecting a resource not renewable."

His remarks are unlikely to reassure that mark metal key gaps as the Chinese export restrictions begin to bite, lead to the increase in international prices of some metals manufacturers outside of mainland China by until 700pc.

A recent article published in a magazine published by the Chinese Ministry of commerce, International Business daily, urges strong "wars of REE" stand and resists calls to the "great powers" to ease the quota restrictions.

Hillary Clinton, Secretary of State of the United States welcomed the Declaration, but said that clarification was needed if China would metals to be traded "relentlessly and without interference."

Speaking alongside Japanese Minister of Foreign Affairs, she said: "at the same time, due to the importance of these rare minerals, I think that both the Minister and myself are aware that our country and others will have to seek other sources of supply." "

"This [China quotas] served as a wake-up call, call" she added, "We welcome the Chinese statement resumes normal trade in these materials, but I think that the world has seek additional supplies." ""

Japan warned that its metals stocks could exhausted by March, and now seeks to sign an agreement with the Viet Nam supply to reduce its dependence on China, while the Federation of German industries warned this week that the acquisition of rare earths became more difficult.

The question is supposed to featured prominently on the top of the leader of the month next G20, but a sign of defensiveness China on the question, Japanese media has reported that China last week overturned a meeting of Ministers of trade of China, the Japan Korea South to avoid the problem.

China says it must cut exports of REE to streamline and clean a polluting mining industry and protect essential resources she needs in the future as its own manufacturing base moves up the value chain.

But critics say illegal, amount of arm twisting export quotas requiring foreign manufacturers to move to China to ensure its supply while giving an unfair advantage of prize in the international competition from Chinese manufacturers.

Hans-Peter Keitel, President of the Federation of German industries, in the Wall Street Journal warned this week REE became a "geopolitical issue" at risk increasing that German and European manufacturers would be "where the raw materials are side."

Department of Chinese industry spokesman dismissed critics once more on Thursday, saying land rare quotas that China was "in accordance with the rules of world trade (WTO)".

However earlier this year, the secretariat based in Geneva has warned China on rare earth export quotas and some other key metals were causing alarming distortions in international markets.

"The difference resulting from domestic prices and world prices constitute implied assistance to domestic processors downstream of targeted products and therefore provides a competitive advantage", the secretariat stated in its biennial China trade review.

Tightening supply predicts REE for companies outside of China has led to a rush by non-Chinese mining companies including Australia Lynas Corporation and Molycorp. in the United States produce fresh supplies should start to come on stream by mid-2011.

However, mine REE - which may take up to 15 years to put on the market after discovery - race enabled analysts warning of a bubble forming many explorers of rare earth share prices.

An index of rare earth by Kaiser bottom Fish online six junior miners had market capitalization of almost $represents (￡ 4 5bn), an unrealistic amount, given the annual market REE is currently US$ transmitters each year - or the equivalent of two weeks ago imports Chinese iron ore.

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