Latest news with #RareEarthExports
CNA
6 days ago
- Business
- CNA
EU says China's links with Russia now 'determining factor' in ties
BEIJING: EU chief Ursula von der Leyen warned on Thursday (Jul 24) that China's ties with Russia were now the "determining" factor in its relations with the European Union, as she wrapped up a tense summit in Beijing that also saw China agree to speed up exports of rare earth minerals to the bloc. China's leadership has sought to draw the European Union closer as it positions itself as a more reliable partner than the United States and a bedrock of stability in a troubled world. But while nominally intended to celebrate 50 years of diplomatic ties, the EU has made clear there are deep divisions over trade, fears that cheap, subsidised Chinese goods could overwhelm European markets and Beijing's tacit support for Russia's war against Ukraine. Brussels says China's deepening political and economic relations with Moscow since the 2022 invasion have helped Russia's economy weather sweeping Western sanctions. Beijing denies that claim. Wrapping up that summit, von der Leyen told a news conference in Beijing that the bloc had made clear that the issue was now the "determining" factor in its relations with China. She and European Council President Antonio Costa expressed "our expectations that China would follow up on our concerns and the expectation that it would use its influence to bring Russia to accept a ceasefire, to come to the negotiation table, enter peace talks and put an end to the bloodshed", von der Leyen said. She also said the bloc agreed with Beijing to an "upgraded" mechanism for Chinese exports of rare earth minerals - another key sticking point in ties. China dominates the global industry for extracting and refining rare earths. Since April, it has required licences to export some of the strategic materials, triggering anxiety among businesses worldwide. "If there is a delay ... we have now established a mechanism where the companies can immediately ask us to mediate and to find out why there's a delay on the delivery of the critical raw materials," von der Leyen said. And Costa said the officials had raised human rights concerns with Chinese counterparts. "DEEPEN COOPERATION" China, in contrast, framed Thursday's summit as a way for the bloc and Beijing to deepen trust in a turbulent world. Welcoming von der Leyen and Costa at Beijing's ornate Great Hall of the People, President Xi Jinping said "the more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust and deepen cooperation". "The challenges facing Europe at present do not come from China," he said, calling on both sides to "make correct strategic choices". Costa also stressed to the Chinese leader that the EU wanted to see "concrete progress on issues related to trade and the economy, and we both want our relationship to be ... mutually beneficial". Chinese Premier Li Qiang told the EU leaders in a separate meeting that "close cooperation" was a "natural choice" for the two major economies. "As long as both China and the EU earnestly uphold free trade, the international economy and trade will stay dynamic," he said. CLIMATE AGREEMENT In rare agreement, China and the EU vowed to "step up" efforts to address climate change. The warming planet is historically an area of convergence between Brussels and Beijing, with both willing to cooperate on combating climate change. Chinese and European leaders agreed on enhancing bilateral cooperation in energy transition and committed to accelerating global renewable energy deployment, a joint statement said. The EU also flagged its yawning trade deficit with China that stood at around US$360 billion last year and which von der Leyen described as "unsustainable". Beijing dismissed those concerns, insisting that Brussels must "rebalance its mentality", not its economic ties with China. If EU concerns were not addressed, "our industry and citizens will demand that we defend our interests", von der Leyen told Premier Li. The EU has imposed hefty tariffs on electric vehicles imported from China, arguing that Beijing's subsidies unfairly undercut European competitors.
Forbes
12-06-2025
- Business
- Forbes
China Market Update: Risk Off Night On Middle East Tensions & Trump Tariff Saber Rattling
CLN Despite a weaker US dollar, Asian equities were off overnight on growing chatter of a coming Middle East crisis and Trump's tariff threat reiteration. On the former, Mainland media noted that the International Atomic Energy Agency Board of Governors stated Iran had 'failed to comply with its nuclear safeguard obligations' for the first time in twenty years. No idea if there is any connection with the Israel-Iran concerns. On the latter, Chinese company JL MAG Rare-Earth stated it 'had obtained export licenses issued by national authorities for exports to destinations including the US, Europe, and Southeast Asia.' This follows last Saturday's Ministry of Commerce license approval, as May rare earth exports increased 23% MoM and 2.3% YoY. Hong Kong underperformed as growth stocks favored by foreign investors were hit. Interesting to see the US dollar lower versus every Asian currency except India, while favored Hong Kong growth stocks were hit, with Hong Kong's top ten most heavily traded by value all down for the day. Alibaba -3.21% despite Ant filing for a Hong Kong stablecoin license, while Tencent -1.54% on chatter it will buy South Korea's Nexon Games (225570 KS) for $15B. Hong Kong and Mainland healthcare stocks rebounded after I jinxed them yesterday by noting their recent outperformance. Precious metals had a good day in both Hong Kong and Mainland China. Auto/EV/Hybrid was weak on news, several cities have suspended used car purchase subsidies following reports that dealers were selling new cars as used to garner the subsidies. The Ministry of Commerce and the Ministry of Foreign Affairs held separate afternoon press conferences reiterating the progress made in London in US-Sino relations. They did reiterate that the London meeting confirmed what Trump and Xi had outlined in their June 5th phone conversation. After their underlings screwed up the Geneva trade agreement, the two bosses had to get involved which must be frustrating for them. Reminds me of my wife's frequent lament on household and child tasks, 'I do everything!' My reply is, 'How can you be doing everything, if I'm doing everything!'. YTD Mainland investors have bought $87B of Hong Kong stocks via Southbound Stock Connect versus $102B for 2024. With that said, Tencent has seen net selling since April 23rd, while Alibaba has seen choppy/leaning outflow since early May. Even Kuaishou has seen net outflows in the last week. Xiaomi has seen only two small net buy days since early May. Meituan has bucked the trend despite a very small net sell today. What gives? One factor is that Hong Kong's rebound has led to more capital raising as companies like CATL have been relisted in Hong Kong. Today, Horizon Robotics sold 681mm shares, raising $601mm via private placement. The money needs to come from somewhere to fund those purchases, so the more heavily owned you are, the more likely the stock becomes a funding source. Investors aren't blowing out of these names, just trimming them. Tencent's percentage of shares owned via Southbound Stock Connect has declined 11.82%/1.087B shares on April 24 to 11.13%/1.023B shares today. Alibaba's shares owned via Southbound Stock Connect went from 8.81%/1.682B shares on April 28 to 8.63%/1.646B shares today. Net net, no reason to freak out, IMO. Live Webinar Join us Tuesday, June 17, at 10 am EDT for: Carbon Update: EU Market Momentum & California's Legal Landscape for Investors Please click here to register New Content Read our latest article: Navigating Global Crosswinds: Carbon Markets Respond to Tariff Tactics and Executive Orders Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
