Chinese exports of rare-earth magnets plummet in May
Chinese customs data revealed that China's rare-earth magnet exports plummeted by 70% year-on-year in May. (AFP pic)
BEIJING : Chinese exports of rare-earth magnets continued their downward slide in May, official data showed today, reflecting restrictions imposed by Beijing during its trade war with the US.
China is the world's leading producer of rare earths, used to make magnets essential to the automotive, electronics and defence industries.
Since April, Beijing has required traders to obtain licences before they export the strategic materials, a move seen as retaliation for US curbs on the import of Chinese goods.
Many manufacturers, particularly in the automotive sector, have bewailed what they view as sporadic licence issuances.
Chinese customs data revealed today that the country's rare-earth magnet exports plummeted by 70% year-on-year in May, following an initial slowdown observed in April.
Exports fell below the US$60 million mark, hitting their lowest level since 2015, excluding the Covid-19 pandemic, according to Bloomberg News.
After talks between China and the US in London this month, Beijing said it had issued a 'certain number' of export licences for rare earths.
US President Donald Trump said last week on his Truth Social platform that 'any necessary rare earths… will be supplied, up front, by China'.
Beijing also said it would launch a 'green channel' to facilitate rare earth exports to the EU.
However, its exports of rare-earth magnets to the EU in May plunged by 81% year-on-year, according to the customs figures.
Exports of small parcels to the US dropped by half compared to the previous month.
Last month, Washington ended a tariff exemption previously enjoyed by low-value parcels shipped from China and Hong Kong.
The measure dealt a severe blow to platforms shipping low-cost items from China, such as Shein and Temu.
The decline was offset by a rise in China's total small parcel exports to the rest of the world, which were up 40% year-on-year, with particularly notable increases to Singapore, Russia, Europe and Australia.
Besides the US, several countries have been trying to limit the rise of platforms sending cheap products made in China.
This month, France adopted a bill that aims to curb fast fashion by banning advertising and imposing an additional tax on small parcels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
Oil rises in choppy session as investors weigh up US strikes on Iran
LONDON: Oil prices touched a five-month high before paring gains on Monday as oil and gas transit continued on tankers from the Middle East after US airstrikes against Iran at the weekend. Brent crude futures were up 85 cents, or one per cent, at US$77.86 a barrel by 1126 GMT. US West Texas Intermediate crude rose by 84 cents, or one per cent, to US$74.68. US President Donald Trump said he had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of conflict in the Middle East as Tehran vowed to defend itself. Israel carried out fresh strikes against Iran on Monday including on capital Tehran and the Iranian nuclear facility at Fordow, which was also a target of the US attack. Iran, which is OPEC's third-largest crude producer, said on Monday that the US attack on its nuclear sites expanded the range of legitimate targets for its armed forces and called US President Donald Trump a "gambler" for joining Israel's military campaign against the Islamic Republic. Meanwhile, China said the US attack had damaged Washington's credibility and warned that the situation could go "out of control". The Brent and WTI crude benchmarks touched five-month highs of US$81.40 and US$78.40 respectively on Monday before giving up gains to turn negative and then recover to a one per cent gain. Prices have risen since the start of the conflict on June 13 on mounting fears that Iran could retaliate by closing the Strait of Hormuz, through which about a fifth of global crude supply flows. "All eyes remain on the Strait of Hormuz ... and whether Iran will seek to disrupt tanker traffic," said Saxo Bank analyst Ole Hansen. Investors are still weighing up the extent of the geopolitical risk premium, given the Middle East crisis has yet to crimp supply. UBS analyst Giovanni Staunovo said the risk premium is fading but it is unclear how the conflict might evolve, and prices are likely to remain volatile in the near term. A Goldman Sachs report on Sunday said that Brent could briefly peak at US$110 a barrel if oil flows through the Strait of Hormuz were halved for a month and remain down by 10 per cent for the following 11 months. The bank still assumed no significant disruption to oil and natural gas supply, citing global incentives that prevent sustained and very large disruption. Given the waterway is indispensable for Iran's own oil exports, which are a vital source of its national revenue, a sustained closure would inflict severe economic damage to Iran itself, making it a double-edged sword, said Sugandha Sachdeva at research firm SS WealthStreet.
The Star
3 hours ago
- The Star
Hungary and Slovakia block Russian sanctions package, Budapest says
FILE PHOTO: Plastic letters arranged to read "Sanctions" are placed in front of Russian flag colors in this illustration taken February 25, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo BUDAPEST (Reuters) -Hungary and Slovakia have decided not to support the EU's plan for an 18th sanctions package against Russia, Hungarian Foreign Minister Peter Szijjarto said on Monday in a press briefing broadcast on his Facebook page. Hungary and Slovakia decided to block the sanctions package in response to European Union plans to phase out Russian energy imports, the minister said. "We did this because the European Union ... wants to prohibit member states, including Hungary and Slovakia, from purchasing cheap Russian natural gas and cheap Russian oil as they have done previously," Szijjarto said. Hungary and Slovakia continue to rely on Russian gas and oil supplies and have maintained warm ties with Moscow. The Commission on June 10 proposed a new round of sanctions against Russia for its invasion of Ukraine more than three years ago, targeting Moscow's energy revenues, its banks and its military industry. In response, Slovak Prime Minister Robert Fico said that Slovakia will not back the package of sanctions unless the European Commission provides a solution to the situation Slovakia faces if the bloc phases out Russian energy imports. Sanctions proposals require unanimity in the bloc for approval. Late on Sunday, Hungarian Prime Minister Viktor Orban urged the EU to take a proposed ban on Russian energy off the agenda due to an expected rise in energy prices following the U.S. bombing of Iran. (Reporting by Anita Komuves; Editing by Kevin Liffey)
Malay Mail
3 hours ago
- Malay Mail
Clock ticking: Debt fears, Medicaid cuts stall Trump's US$2.8t ‘Big Beautiful Bill' ahead of July 4 deadline
Trump, US Senate Republicans face test as 'Big Beautiful Bill' deadline looms Republicans face resistance over tax-cut bill due to debt concerns Senate parliamentarian's decision crucial for bill's passage Medicaid cuts in bill opposed by some Senate Republicans WASHINGTON, June 23 — US President Donald Trump and his allies in the Senate face a political free-for-all over passage of his sweeping tax-cut and spending legislation, which Republican congressional leaders hope to enact in coming days despite growing resistance from different party factions. Senate Majority Leader John Thune, House Speaker Mike Johnson and administration officials are pressing Republican lawmakers to pass the One Big Beautiful Bill Act so Trump can sign it into law before the July 4 US Independence Day holiday. But hardline Republicans have redoubled their push for additional spending cuts after an official forecast that the bill would add at least US$2.8 trillion (RM12 trillion) to the US$36.2 trillion US debt. Other lawmakers, looking to minimise the impact of cuts on social programmes including Medicaid, have also voiced adamant opposition to the bill's language. Republicans control the Senate by a 53-47 majority and the House by 220-212. One Republican from each chamber has opposed the legislation from the beginning due to the debt. Thune aims to begin Senate action by the middle of this week and complete passage by the weekend, sending the bill back to the House for final approval. Trump is expected to turn up the heat on senators this week, according to Republican lawmakers who view him as 'the closer.' 'Great unity in the Republican Party, perhaps unity like we have never seen before. Now let's get the Great, Big, Beautiful Bill done,' Trump said in a social media post on Sunday. Lawmakers are still waiting for the Senate parliamentarian, the chamber's nonpartisan gatekeeper, to decide whether the legislation qualifies for the privileged status needed to circumvent Democrats and the 60-vote Senate filibuster and pass it with only 51 votes. 'The Senate Republican bill is, simply put, bigger cuts, bigger betrayal,' Senate Democratic leader Chuck Schumer said. 'It makes even deeper cuts to healthcare. It destroys American clean energy. It raises costs on working and middle-class families. And it rewards those at the very top,' he said. Pushback Some Republicans are pushing back on Thune's schedule in hopes of gaining more time to negotiate bigger savings. 'There's no way. There's no way,' Senator Ron Johnson, a leading fiscal hawk who wants to cut federal spending back to pre-Covid pandemic levels, said when asked if he could support the bill this week. The Wisconsin Republican said he is coordinating with fellow hardline Senators Mike Lee and Rick Scott, who want to glean additional savings from green tax credits and the Medicaid healthcare programme for lower-income Americans, respectively. 'If we had all the money in the world, why would you make a change? We don't. We're running US$2 trillion deficits,' Scott told reporters. The legislation has yet to pass muster with the Senate parliamentarian, a nonpartisan referee who has said Republican efforts to restrict food assistance, curtail the ability of judges to block government policies, slash funding for financial watchdogs and reverse Biden vehicle policy, violate budgetary rules. The nonpartisan Congressional Budget Office said last week the House version of the bill could lead to a US$2.8 trillion increase in the federal deficit over the next decade. The deficit hike would reach a total of US$3.4 trillion, if the cost of rising interest payments due to increased borrowing needs were included, according to the agency, which took into account the bill's potential impact on economic activity. The report contradicted Republican claims that tax cuts would lead to buoyant economic growth and pay for themselves by generating higher revenues from increased business activity. In a Senate floor speech last week, Thune cited a White House Council of Economic Advisers projection the legislation would increase federal revenue by US$4.1 trillion, saying it would more than offset the CBO's deficit estimate. Medicaid hit A revised Senate version of the legislation would reduce Medicaid provider taxes from 6 per cent to 3.5 per cent by 2031 in states that expanded the programme to able-bodied recipients under the Affordable Care Act. That provision is opposed by several Senate Republicans who say it would undercut funding for rural hospitals. 'They cannot defund rural hospitals,' said Senator Josh Hawley, a Missouri Republican who has positioned himself in the debate as a champion of Medicaid. But Republicans signaled the time for negotiations would soon come to an end and predicted that wavering members would ultimately support the legislation. 'Some people are going to have to settle for a ham and egg sandwich without the ham. That's just the way it is,' said Senator John Kennedy of Louisiana. — Reuters
