China Tightens Rare Earth Export Controls Globally

China has tightened export controls on rare earths and other critical materials used in advanced tech manufacturing, amid ongoing trade negotiations with the US. The new regulations require foreign companies to obtain government approval to export products containing rare earths and explain their intended use. The move is seen as a bargaining chip ahead of an expected meeting between Chinese leader Xi Jinping and US President Donald Trump. The restrictions also target overseas defense manufacturers, including those in the US, and could impact the global tech supply chain.

Asia-Pacific markets closed mixed on Friday, with some indices declining while others rose. South Korean chipmakers SK Hynix and Samsung Electronics reached record highs due to a series of artificial intelligence deals, including a potential OpenAI and Advanced Micro Devices partnership. Japan's Nikkei 225 and Australia's ASX/S&P 200 fell, while South Korea's Kospi rose. The Hang Seng Index and mainland China's CSI 300 declined. The movement in Asia-Pacific markets followed declines in Wall Street, as investors assessed the state of the economy and reacted to the ongoing U.S. government shutdown.

The article discusses China's recent tightening of export controls on rare earth metals, which are crucial for the global tech supply chain. This move is seen as a way for China to assert its dominance and leverage in trade discussions, particularly ahead of a potential meeting between US President Donald Trump and Chinese counterpart Xi Jinping. The restrictions have led to a surge in US rare earth and critical mineral miners' stocks, as the market speculates that the Trump administration will invest in building a domestic supply chain. The article also touches on other market news, including Ferrari's shares plummeting after the luxury carmaker scaled back its electrification ambitions, and the S&P 500 and Nasdaq indexes retreating from their all-time highs.

China has tightened export controls on rare earth metals and related technologies, asserting dominance over the global tech supply chain. The move comes ahead of a potential meeting between US President Donald Trump and Chinese counterpart Xi Jinping, and has sent rare earth stocks surging. The new measures require companies to apply for a license from Beijing to export products containing Chinese-sourced rare earth metals. The restrictions have sparked market speculation that the Trump administration will invest in building out a domestic supply chain. Meanwhile, Ferrari's shares plummeted after the luxury carmaker scaled back its electrification ambitions, while Samsung and SK Hynix hit record highs due to AI deals.

The stock market experienced a downturn on Thursday, with the S&P 500 and Nasdaq Composite closing lower after retreating from fresh all-time highs. The federal government shutdown, now in its ninth day, continues to impact investor sentiment due to a lack of economic data from the U.S. government. Despite positive earnings reports from companies like Delta Air Lines and PepsiCo, the broad market index dropped 0.28% and the tech-heavy index slid 0.08%. The Dow Jones Industrial Average declined 0.52%. Nvidia's stock regained some momentum after its CEO stated that computing demand has increased substantially. Earnings season is set to begin in earnest next week, with several major banks scheduled to post their third-quarter results. Levi Strauss shares fell 8% in extended trading despite posting better-than-expected earnings, due to concerns over potential tariffs.