TAIPEI—Taiwan and China are discussing a possible agreement in which Beijing would allow the export of more rare-earth materials to the island as it tries to shore up its technology and petrochemical companies.

Hou Kuan-chih, a consultant to Taiwan's Ministry of Economic Affairs said Wednesday that he met recently with Chinese negotiators and said Beijing was receptive to a possible deal. Beijing might lift some of its export quotas or lower export tariffs on shipments of rare-earth minerals to Taiwan, Mr. Hou said. China's Commerce Ministry was unavailable for comment.

Preferential treatment by China for Taiwan in supplies of rare-earth materials wouldn't radically alter the global trade in the metals because Taiwanese companies buy much less than those in Japan, Europe and the U.S. But such a move might signal that Beijing is becoming flexible on its tight control of the metals, a policy that has sparked concern and criticism world-wide.

A deal with China would be politically sensitive in Taiwan, and Mr. Hou said Taipei is cautious about making an arrangement. He said the ministry will consider its approach at a meeting Thursday and that trade in rare-earth minerals could feature in negotiations between the political adversaries.

Taiwan and other countries rely on Chinese rare-earth materials for the solar, computer, petrochemical and other industries. Although Taiwan's imports of the materials have fallen in recent years as manufacturers have migrated to China, an agreement to increase Taiwan's supplies could attract investment in manufacturing on the island. Taiwan's imports of rare-earth minerals fell to between 1,000 and 2,000 metric tons last year from 4,000–5,000 tons in 2004, Mr. Hou said.

China cut its quotas on exports of rare-earth metals for the first half of this year by around 35% from a year earlier. Beijing said last year's quota was 40% below the 2009 figure. Meanwhile, prices of rare-earth minerals have risen more than tenfold since 2009, according to Goldman Sachs.

China controls about 95% of the world's output of rare-earth minerals, a suite of 17 elements used in such applications as high-powered magnets, fuel refining, energy-efficient light bulbs and mobile-phone screens.

An advisory panel to Taiwan's Mainland Affairs Council last monthsaid that in light of China's export quotas and the rise in prices, Taipei should find ways to reduce its dependence on imports and consider an agreement with Beijing over trade in rare-earth minerals.

It was unclear what Taiwan might offer in return for greater access to China's rare-earth materials. A move by China to help boost Taiwan's economy could be intended to aid next year's re-election campaign of Taiwanese President Ma Ying-jeou, whom China favors.

"If an agreement were to be made, it would mean a competitive advantage for Taiwan's electronics industry and could eventually lead some Japanese component manufacturers to move operations to Taiwan," said National Taiwan University Vice President Tang Ming-je. He said, however, that a rare-earths agreement likely wouldn't have a tangible effect on the elections since its payoff to Taiwan would take time.

Citigroup economist Cheng Cheng-mount expressed skepticism that the countries would reach an agreement. "Obviously, China wants to do a favor for Taiwan to win people over," he aid. "But in reality, it's difficult to do so because they have to face internal interest groups."

China in previous trade negotiations occasionally has promised more than it delivered, he said. Also, preferable treatment for Taiwan could be in danger of violating World Trade Organization rules, Mr. Cheng said.