Lynas in New Sales Agreements Talks as Tariffs Arrest U.S.-China Rare-Earths Trade
The company, which runs operations in Australia and Malaysia, said recent policy changes have affected trading in the China-dominated market for rare earths, critical minerals needed for everything from smartphones to jet fighters. China is responsible for around 85% of the world's rare-earth refining.
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Chinese exports of two critical minerals plunge even as rare earths rebound
By Lewis Jackson BEIJING (Reuters) -China's exports of two critical minerals used in weapons, telecommunications and solar cells have plunged over the past three months amid a crackdown on smuggling and transshipment that has involved China's top spy agency. Exports of antimony and germanium in June were down 88% and 95%, respectively, versus January, according to customs data published on Sunday. Much as with rare earths, China is by far the largest miner and or refiner for both elements. Both were added to an export control list in 2023 and 2024, respectively. Exports to the U.S. were then banned in December as part of retaliation for chip restrictions. Rare earths were added to the same control list in April, precipitating a sharp collapse in export volumes that forced some carmakers in Europe and the U.S. to pause some production lines. But where rare earth export volumes rebounded sharply last month thanks to a deal struck between Washington and Beijing, exports of germanium and antimony fell to some of the lowest levels on record. The collapse in export volumes coincides with well-publicised crackdown on critical mineral export control evasion. China's spy agency said last week it had detected attempts to bypass controls via transshipment, where cargoes move through a third country before going on to their final destination. The week before Reuters reported that unusually large quantities of antimony were being exported to the United States from Thailand and Mexico in what appeared to be transshipment conducted by at least one Chinese company. China's exports of antimony to Thailand have collapsed by 90% after hitting a record in April. There have been no exports to Mexico since April. Spot market prices for high-purity germanium have more than doubled since China imposed export restrictions in July 2023. Antimony prices have nearly quadrupled from May last year.
Yahoo
30 minutes ago
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China starts work on world's largest 300 billion kWh hydro-power dam in Tibet
Chinese Premier Li Qiang has announced the formal launch of a massive hydroelectric project on the Yarlung Tsangpo River in Tibet. To mark the occasion, a groundbreaking ceremony took place on July 19, 2025, in the southeastern Tibetan city of Nyingchi near the Indian border. According to reports, the project is expected to be the world's largest hydro-power facility upon completion, with a projected annual electricity output of 300 billion kilowatt-hours. That's around three times the capacity of China's existing Three Gorges Dam. The Yarlung Tsangpo River originates on the Tibetan Plateau and becomes the Brahmaputra River as it flows into India's northeastern states of Arunachal Pradesh and Assam before continuing into Bangladesh. Owing to the trans-boundary nature of the river, China's move has raised concerns in both India and Bangladesh regarding the downstream effects of the project. Particularly in terms of water availability, agricultural impact, and environmental disruption. Dam to have 5 cascade hydro-power stations Beijing had originally proposed the project as part of its 14th Five-Year Plan in 2020, with a formal approval being granted in late 2024. According to reports, the dam will consist of five cascade hydro-power stations, requiring a total estimated investment of 1.2 trillion yuan (approximately $167 billion). The primary purpose of the project is to generate electricity for external markets, though it is also expected to meet some local energy needs in Tibet. In a bid to quell regional anxiety, China has stated that the project has already been subject to comprehensive scientific assessment to ensure it would not negatively impact downstream ecosystems, geological stability, or the water rights of neighboring countries. The Chinese foreign ministry has also been quick to point out that the dam will contribute to disaster prevention, climate change adaptation, and regional energy cooperation. The ministry further stated that the dam project will not be used for political leverage. Despite these promises, concerns persist in India and Bangladesh. Analysts and officials worry about the potential for China to manipulate river flow during times of political tension, possibly causing artificial floods or droughts downstream. Environmental groups have also highlighted the risk of biodiversity loss, displacement of communities, and disruption to the delicate Himalayan ecosystem. Concerns in India, Bangladesh about the project India, in particular, has accelerated its own hydro-power development projects in Arunachal Pradesh to assert control over its water resources and offset perceived risks from the Chinese dam. Longstanding border disputes also compound the issue. While India asserts that Arunachal Pradesh is an integral part of its sovereign territory, China continues to claim it as part of southern Tibet—objecting to infrastructure developments in the region. To manage the massive undertaking logistically, China has established a new state-owned enterprise named the China Yajiang Group, which will serve as the official project owner. The new company will be responsible for construction, operation, and ensuring environmental protections. Speaking during the company's inauguration, China's vice-Premier Zhang Guoqing underscored the importance of technological innovation and ecological safeguards. While Beijing frames the project as a forward-looking solution for clean energy and regional development, it continues to fuel tension and uncertainty in a region already marked by sensitive water politics and unresolved border conflicts. Solve the daily Crossword
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31 minutes ago
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Chinese investors snap up stocks on hopes for an end to price wars and overcapacity
BEIJING (AP) — China's stock market is buzzing over government promises to tackle price wars that have hurt profits and worsened global trade tensions. The prevailing catchphrase is 'anti-involution,' and it reflects efforts to curb intense competition and overcapacity in industries like solar panels, steel, and electric vehicles. With rising trade barriers such as President Donald Trump's higher tariffs, and relatively weak domestic demand, manufacturers have been slashing prices, undermining their bottom lines and driving some out of business. The producer price index, which measures the price that factories receive for their goods, has fallen steadily for nearly three years in China in a prolonged bout of deflation. The long-running issue spilled over into global markets as low-priced Chinese exports worsen trade friction with key trading partners including the United States and Europe. Solar panel glass makers agree to cut output by 30% In a series of recent statements, the Chinese government and industry associations have signaled they're getting serious about reining in cut-throat competition, known as invollution or 'neijuan' in Chinese. The top 10 makers of glass for solar panels agreed on June 30 to shut kilns and cut production by 30%, an industry association said. The government has launched an auto safety inspection campaign, addressing concerns that automakers were skimping on quality to cut costs. It's unclear whether these efforts will succeed, but the sense that China may finally be tackling this chronic problem was enough to spark a rally in stocks in some of those under-pressure sectors. Shares of Liuzhou Iron & Steel Co. gained 10% on Friday and have risen more than 70% since June 30. Solar panel glass producer Changzhou Almaden Co. fell at the end of last week but is still up about 50%. More broadly, two exchange traded funds in solar panels and steel have risen about 10%, outpacing a 3.2% rise in the Shanghai Composite, China's leading market index. The performance of EV-maker stocks has been mixed, with Li Auto and Nio recording double-digit percentage gains while market leader BYD declined. Foreigners can't buy Chinese stocks directly but they are able to invest in about 2,700 stocks and 250 exchange traded funds through the Hong Kong exchange. Government calls intense price wars 'disorderly' The gains follow high-level government pronouncements against disorderly price wars. On June 29, the People's Daily newspaper, the mouthpiece of the ruling Communist Party, ran a lengthy page 1 article on involution, saying they run counter to the party's goal of high quality economic development. Chinese leader Xi Jinping weighed in at a closed-door economic meeting, calling for better regulating competition and incentives by local governments to attract factory investments that are blamed for overinvestment in affected industries. The tougher talk began with a focus on automakers in late May, specifically around electric vehicle price wars that began more than three years ago. Analysts at investment bank UBS said the shift is good news for auto industry profits and company stocks. 'Though it's difficult to imagine a sudden U-turn of the industry from fierce competition to orderly consolidation, it's indeed possible to have near-term ceasefire of the price war,' they wrote. Weak demand and overcapacity bring a fight for survival After BYD launched another round of price cuts on May 23, some competitors, the main industry association and government all called for fair and sustainable competition. The EV battery industry, the cement association and major construction companies have issued statements echoing calls for an end to excess competition. The term involution, which suggests a spiraling inward and shrinking, was initially applied in China to students and young workers, who felt they were caught up in meaningless competition that led nowhere as the job market weakened and wages stagnated in recent years. At the industry level, it has come to mean sectors that have too many companies competing for a slice of the pie, leading to fierce price cutting to try to gain market share. The mismatch between production capacity — how much an industry can make — and actual demand for the product, reflects overcapacity that forces companies to compete for survival in a limited market space, said a recent article in the Communist Party magazine Qiushi. Obstacles to fixing the problem Some Chinese industries, especially steel and cement, have long suffered from overcapacity. A government push to promote green industries has fostered similar problems in that sector, including solar panels, wind turbines and electric vehicles. A flood of Chinese exports is leading to more trade barriers in Europe and the U.S. and in some emerging markets such as Mexico, Indonesia and India. Ultimately, economists say industries need to consolidate through company mergers and bankruptcies. But the process will take time. A major obstacle is provincial governments that want to protect local companies and jobs. Alicia García-Herrero, the chief economist for Asia-Pacific at the Natixis investment bank, said that recent comments by top Chinese economic officials suggest they realize something needs to be done. 'How much is action versus words, I don't know,' she said. 'But I do think it's a big problem for China.' ___ Associated Press researcher Yu Bing contributed. Sign in to access your portfolio
