President Trump is set to meet with Chinese President Xi at the Asia-Pacific Economic Cooperation (APEC) Summit later this month, although a recent rare-earth export rule change could complicate the discussion.
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On Thursday, China’s Commerce Ministry said that foreign suppliers must secure China’s approval to export products containing Chinese rare-earth materials when those materials account for 0.1% or more of the product’s total value. In addition, the Ministry said that export requests for products with military applications will typically be denied.
China’s Rare Earth Stronghold
Rare earths have been a central point of U.S.-China trade talks, with Beijing using its control over the industry as a bargaining chip in negotiations. The minerals are used in a wide range of technologies, from smartphones and electric vehicles to semiconductors.
“They want to maintain as much of that strategic position as possible,” said Capital Economics head of China economics Julian Evans-Pritchard.
Investors will be closely monitoring the Trump-Xi meeting, as any shifts in rare-earth policy could have ripple effects across the technology, defense, and manufacturing sectors.
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