Ministry of Commerce officials have denied newspaper reports that China plans to reduce export quotas for rare earths by a further 30 percent next year.

A China Daily report claimed that China plans to further reduce rare earth export quotas by a maximum of 30 percent next year. But Ministry of Commerce (MOFCOM) officials told a journalist from First Financial Daily on October 19 that the story was not true.

The China Daily report cited an unidentified official from MOFCOM as saying that China faces the danger of over-exploitation of its rare earth deposits and is planning further measures to protect them.

Jiang Fan, deputy director general of the department of foreign trade at the MOFCOM told Bloomberg News that he had no knowledge of any plans to reduce rare earth exports by 30 percent next year.

Premier Wen Jiabao said at Sixth China-EU Business Summit that China has not and will not block rare earth exports. But he said proper control of rare earth exports is necessary for the sustainable development of the world.

MOFCOM spokesman Yao Jian said China's restrictions on rare earth exports are lawful and consistent with international regulations and WTO rules, including the sections concerning production and manufacture.

China's business press carried the story above on Wednesday. China.org.cn has not checked the stories and does not vouch for their accuracy.