China gives U.S. unspecified assurances on rare earths

by Arshad Mohammed

HANOI, Oct 30 (Reuters) - China on Saturday offered the United States unspecified assurances on its exports of rare earth minerals needed to make many high-tech products, a U.S.

official said after the two countries' foreign ministers met.

U.S. Secretary of State Hillary Clinton sat down with Chinese Foreign Minister Yang Jeichi on the sidelines of the East Asia Summit in Hanoi, and she was later to fly to China's Hainan Island for talks with State Councilor Dai Bingguo, a key player in U.S.-Chinese relations.

The United States has been uncomfortable about China's decision to slash rare earth export quotas generally and to cut shipments to Japan, with which it is embroiled in a territorial dispute.

While Chinese officials have recently said they will not exploit the high-tech ores used in lasers, superconductors, computers and other electronics for leverage, prices have spiked and firms are rushing to develop sources outside China.

"Secretary Clinton's sought clarification on the Chinese government's policy on the export of rare earth minerals and received assurances," said a U.S. official who spoke on condition that he not be identified.

Washington and Beijing are also at odds over a host of other issues, including the U.S. desire to see China put more pressure on North Korea to curb its nuclear ambitions and improve relations with the South.

The U.S. official said Clinton and Yang had discussed North Korea, next month's G20 meeting in Seoul and Chinese President Hu Jintao's state visit to the United States in January, but provided no details.

The official said Yang had agreed to visit the United States, presumably before Hu's visit, but no date was set.

North and South Korea, which technically remain at war because the 1950-53 Korean War ended in an armistice rather than a peace treaty, exchanged gunfire across their heavily armed land border on Friday, the South's military said.

The rare exchange of fire took place a fortnight before the leaders of the world's 20 top economies meet for a G20 summit in the South Korean capital Seoul, about 100 km (60 miles) south of the demilitarised zone.It was not immediately clear what was behind the skirmish, but in the past the North has carried out provocations around the time the South has hosted prominent international events.