Countries Fight Over Periodic Table as China Hoards Rare Earths
China's massive rock collection has become one of its most important bargaining chips, and as the country tightens its grip on rare earths exports, the global supply chain is showing cracks. This week, world leaders raised the alarm, with EU trade officials emphasizing yesterday the bloc's urgent need to reduce its dependence on rare earths from China.
READ ALSO: US Service Economy Suffers Unexpected Trade War Blow and Unshackled Wells Fargo Fights to Regain Momentum Lost in Penalty Box
When POTUS Trump raised global import tariffs in April, China said, 'Bet,' and rolled out retaliatory restrictions on seven kinds of rare earths and the magnets made from them. At the same time, China cracked down on illegal smuggling of the valuable elements that had made previous export curbs less effective. Last year, China halted exports of three rare minerals critical for making computer chips, EV batteries, and military weapons systems.
Now, auto manufacturing seems to be the first major industry feeling the effects of its mineral deficiency:
Ford temporarily stopped churning out SUVs at a Chicago plant last week because of a shortage of magnets, which are used not only in electric vehicle power systems but also in various components of gas-powered cars, such as power windows and headlights. Finance chief Sherry House said yesterday that restrictions are putting stress on Ford's system. Mercedes-Benz's production chief noted that it's chatting with suppliers about building up reserves, while BMW said its supply chain has been disrupted but its factories are still running.
China's passing out a limited number of export permits, but experts say it's not enough to keep production running smoothly. For now, the auto industry has a stockpile of magnets to fall back on, but it's only expected to last a few months at most.
Digging Deep: The US has spent hundreds of millions of dollars to bring rare earth production stateside since 2020, but it's still in the early stages of building the complicated supply chain (rare earths require more than 100 steps to process). In the meantime, US officials are pushing for access to Ukraine's rare earths, while automakers are trying to develop parts that require fewer or no rare earths. Trump and Chinese President Xi Jinping are expected to have a discussion this week that'll highlight export restrictions. It could be a tad awkward after Trump posted on social media that Xi is 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH.'
This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
CCSC Technology International Holdings Full Year 2025 Earnings: US$0.12 loss per share (vs US$0.13 loss in FY 2024)
CCSC Technology International Holdings (NASDAQ:CCTG) Full Year 2025 Results Key Financial Results Revenue: US$17.6m (up 20% from FY 2024). Net loss: US$1.41m (loss widened by 8.9% from FY 2024). US$0.12 loss per share. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period CCSC Technology International Holdings shares are up 3.7% from a week ago. Risk Analysis Before we wrap up, we've discovered 2 warning signs for CCSC Technology International Holdings (1 can't be ignored!) that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
Western aid cuts cede ground to China in Southeast Asia: study
China is set to expand its influence over Southeast Asia's development as the Trump administration and other Western donors slash aid, a study by an Australian think tank said Sunday. The region is in an "uncertain moment", facing cuts in official development finance from the West as well as "especially punitive" US trade tariffs, the Sydney-based Lowy Institute said. "Declining Western aid risks ceding a greater role to China, though other Asian donors will also gain in importance," it said. Total official development finance to Southeast Asia -- including grants, low-rate loans and other loans -- grew "modestly" to US$29 billion in 2023, the annual report said. But US President Donald Trump has since halted about US$60 billion in development assistance -- most of the United States' overseas aid programme. Seven European countries -- including France and Germany -- and the European Union have announced US$17.2 billion in aid cuts to be implemented between 2025 and 2029, it said. And the United Kingdom has said it is reducing annual aid by US$7.6 billion, redirecting government money towards defence. Based on recent announcements, overall official development finance to Southeast Asia will fall by more than US$2 billion by 2026, the study projected. "These cuts will hit Southeast Asia hard," it said. "Poorer countries and social sector priorities such as health, education, and civil society support that rely on bilateral aid funding are likely to lose out the most." Higher-income countries already capture most of the region's official development finance, said the institute's Southeast Asia Aid Map report. Poorer countries such as East Timor, Cambodia, Laos and Myanmar are being left behind, creating a deepening divide that could undermine long-term stability, equity and resilience, it warned. Despite substantial economic development across most of Southeast Asia, around 86 million people still live on less than US$3.65 a day, it said. - 'Global concern' - "The centre of gravity in Southeast Asia's development finance landscape looks set to drift East, notably to Beijing but also Tokyo and Seoul," the study said. As trade ties with the United States have weakened, Southeast Asian countries' development options could shrink, it said, leaving them with less leverage to negotiate favourable terms with Beijing. "China's relative importance as a development actor in the region will rise as Western development support recedes," it said. Beijing's development finance to the region rose by US$1.6 billion to US$4.9 billion in 2023 -- mostly through big infrastructure projects such as rail links in Indonesia and Malaysia, the report said. At the same time, China's infrastructure commitments to Southeast Asia surged fourfold to almost US$10 billion, largely due to the revival of the Kyaukphyu Deep Sea Port project in Myanmar. By contrast, Western alternative infrastructure projects had failed to materialise in recent years, the study said. "Similarly, Western promises to support the region's clean energy transition have yet to translate into more projects on the ground -- of global concern given coal-dependent Southeast Asia is a major source of rapidly growing carbon emissions." djw/dgi/dhw/rsc Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
27 minutes ago
- New York Post
Trump's party-splitting Epstein dilemma: Letters to the Editor — July 21, 2025
The Issue: President Trump's response to criticism of the Justice Department's Jeffrey Epstein findings. Take a breath, and consider these facts: The Biden administration had access to whatever Jeffrey Epstein documents existed for the entire time that it was in office (''Epstein hoax' not welcome in MAGA,' July 17). Don't you think that the team that invented 'lawfare' would have exposed anything reflecting negatively on President Trump or any Republicans? Epstein had a successful, high-level career in finance before anyone was aware of his sick perversion. He interacted with many well-known and well-heeled individuals in legitimate interactions. Given these facts, how could you release any names in Epstein's notes without context? If you met him with a group of people at a function, and he made a note of it, you'd be smeared by association. Thomas Smith Sarasota, Fla. Although I'm a lifelong Republican, I'm switching my voter registration, and I'll be supporting Democrats in the midterms; we all should. There's no excuse for not prosecuting pedophiles in the Epstein case, and there's even less excuse for attacking one's own supporters for thinking so. Harry Knopp Ripley, WV I honestly believe there is a major coverup. A high-profile inmate conveniently committed suicide and how convenient that all of a sudden there is no list. Prince Andrew was caught and booted out. Clinton was on the plane with Jeffrey Epstein several times and his prior actions speak volumes. Why don't they ask his partner, Ghislaine Maxwell? You're trying to say she doesn't know anything about who else was involved? I am just surprised Maxwell hasn't committed suicide while in jail. She has to have knowledge of this. Bring her before the Department of Justice. Robert Caprio Nutley, NJ The current controversy about releasing the Epstein files fails to consider the difficult choices related to First Amendment protections. While transparency is the current catchword, there are many instances where the public's right to know is secondary to a person's right to privacy and freedom from governmental interference. I want to assure your readers that I have many doubts about Epstein's death, and great curiosity about the alleged client list. But, at the same time, the fact that someone traveled with Epstein or stayed at his resort is not, in itself, a criminal act. On balance, I opt for not releasing any alleged list that may be in the possession of the DOJ. Sidney Baumgarten North Brunswick, NJ Usually, the easiest way to stop a rumor is to provide the public with access to the available information, unless there are issues with the information or names in it that could bias an audience or suggest guilt. Unfortunately, our president believes that the only truth is what he tells us, not what is factual. Alan Swartz Verona, NJ I bleed MAGA red, so I'm not sure who Miranda Devine is referring to when she writes that Trump's base wants the truth about Epstein ('MAGA base wants truth on Epstein,' July 17). I couldn't care less. Sure, I feel terrible for Epstein's victims and there are plenty of sick, depraved individuals out there who need to be arrested and thrown in jail. But Republicans have far greater things to worry about than a dead creep who hung out with Bill Clinton. If the Epstein scandal was so important to the Dems, why weren't they more transparent when they had the chance? Republicans need to stick together, support Trump and make sure as few Democrats as possible get elected to prevent them from wrecking our country. That's what the president's base wants. Michael D'Auria Bronxville The extremely wealthy have had privileges from the beginning of time. Kings, past presidents and dictators have mistresses without censure or open complaint; yet when a group of wealthy people cavort within their group it becomes a cause célèbre. Paul Alexander Ontario, Canada Want to weigh in on today's stories? Send your thoughts (along with your full name and city of residence) to letters@ Letters are subject to editing for clarity, length, accuracy, and style.
