Global fears over Chinese control of rare earth supply became reality this week as the country tightened its grip on exports for the second half of the year.While many expected China – the world’s rare earths production hub – to cut exports gradually, the new quota announced last week has come as a short, sharp shock for consumers in the rest of the world.China’s Ministry of Commerce cut its second-half quota by 70%, bringing its export limit for 2010 some 40% below last year’s figure (IM 9 July 2010: China slashes rare earth exports).Meanwhile, two other new developments also look set to shake up the Chinese market, causing reverberations overseas. Firstly, it was reported that the Chinese government plans to publish official monthly prices for rare earths mined in the southern provinces in a bid to prevent fierce competition between domestic producers.Next, the National Development and Resource Commission proposed a 5%...