China asks S. Korea not to ship products using rare earths to US defence firms
China produces around 90% of the world's rare earths, a group of 17 elements. (EPA Images pic)
SEOUL : Beijing recently asked South Korean companies not to ship products containing China's rare earth minerals to US defence firms, the Korea Economic Daily reported yesterday, citing government and company sources.
The report had initially said China's ministry of commerce warned Korean companies they could face sanctions if they violated the export restrictions.
The ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace and medical equipment, the report said.
The Korea Economic Daily report was later corrected to the 'Chinese government' delivering the message, rather than the commerce ministry.
South Korea's industry ministry said today it was checking with the Chinese government and South Korean companies in order to confirm the report.
'So far, it has not been confirmed that South Korean companies have received an official letter from the Chinese government as per the report,' the ministry said.
China's ministry of commerce did not respond to questions.
Early this month, China placed export restrictions on rare earth elements as part of its sweeping response to Washington's tariffs, restricting the supply of minerals used to make weapons, electronics and a range of consumer goods.
Exporters must now apply to the ministry of commerce for licences, a relatively opaque process that can range from six or seven weeks to several months.
China produces around 90% of the world's rare earths, a group of 17 elements.
The US government has stockpiles of some rare earths, but not enough to supply its defence contractors in perpetuity.
South Korea said in early April it had more than six months of stockpiles of some of the seven rare earths restricted by China, including dysprosium, used in special magnets found in the clean energy sector, including electric vehicles and wind turbines.
Senior South Korean government officials are set to meet their US counterparts in Washington tomorrow to discuss tariffs.
China on Monday warned countries against striking a broader economic deal with the US at its expense.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
15 minutes ago
- The Star
U.S. stocks gain on optimism over China-U.S. trade talks
NEW YORK, June 10 (Xinhua) -- U.S. stocks closed higher on Tuesday as investors monitored ongoing trade discussions between China and the United States, fueling hopes for progress in easing global economic tensions. The Dow Jones Industrial Average rose by 105.11 points, or 0.25 percent, to close at 42,866.87. The S&P 500 gained 32.93 points, or 0.55 percent, to settle at 6,038.81, while the Nasdaq Composite Index climbed 123.75 points, or 0.63 percent, ending the day at 19,714.99. Gains were broad-based, with 10 of the 11 primary S&P 500 sectors finishing in green. Energy and consumer discretionary stocks led the advance, rising 1.77 percent and 1.19 percent, respectively. Industrials was the only sector to decline, slipping 0.44 percent. Trade negotiations between Chinese and U.S. officials in London entered their second day on Tuesday. U.S. Commerce Secretary Howard Lutnick expressed the optimism that the talks could wrap up by Tuesday night, though he acknowledged they may extend into Wednesday if necessary. Markets have rallied through the early part of June, buoyed by investor optimism surrounding trade diplomacy and ongoing signs of economic strength. "Technically, shares have been on a nice run eclipsing key levels to get back on track. Longer-term they started the week right above its downtrend line going back to its annual highs," said Jay Woods, chief global strategist of Freedom Capital Markets. Tesla shares surged 5.67 percent on Tuesday, extending a rebound that began earlier this week following a steep sell-off tied to the high-profile dispute between Tesla CEO Elon Musk and U.S. President Donald Trump. The electric vehicle maker's stock has now recovered a significant portion of last week's losses. Other mega-cap technology stocks also ended the day mostly higher. Alphabet and Meta Platforms each gained more than 1 percent, while Apple rose 0.61 percent, recovering modestly after a dip on Monday triggered by lackluster reactions to its Worldwide Developers Conference. Despite the market's recent strength, the World Bank issued a cautionary note on the U.S. economic outlook, becoming the latest global institution to highlight risks posed by trade uncertainty. In its updated forecast, the bank projected U.S. economic growth of just 1.4 percent in 2025, down sharply from the 2.8 percent rate recorded in 2024. Some strategists are also cautious about the longer-term picture. Analysts at HSBC noted that while global equities may continue climbing over the next three months, the outlook beyond that appears more uncertain. "Medium term (6 months+) the risk/reward is looking more unbalanced, with markets trading near their highs, recession fears appear largely priced out and the structural pillars supporting U.S. exceptionalism at risk of being undermined," strategist Alastair Pinder wrote in a note Tuesday.
The Star
an hour ago
- The Star
China bans bank from luring depositors with gifts
The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles in multiple cities for new depositors who can park in 50,000 yuan for three months. — Bloomberg BEIJING: A Chinese lender's stunt to woo depositors with gifts including the wildly popular Labubu dolls has been barred by financial regulators, underscoring the increasingly fraught battle among banks for customers as interest rates and profit margins fall. The Zhejiang branch of the national financial regulatory administration has asked local banks to refrain from giving non-compliant perks to attract deposits, according to sources. The guidance came in the wake of a promotion by Ping An Bank Co, which has been offering Labubu collectibles – blind box toys – in multiple cities for new depositors who can park in 50,000 yuan for three months. Such a practice, which often involves offering free items like rice or small home appliances, as well as e-gifts such as memberships at Internet platforms, was seen as driving up costs at banks and hurting their margins, said the sources. While Ping An Bank's marketing campaign went viral on Chinese social media platform Xiaohongshu and sparked strong interest from potential savers, it also drew criticism from state media which said it was 'not a long-term solution.' Chinese lenders are walking a tightrope as they balance between deposit taking and protecting margins. — Bloomberg
The Star
an hour ago
- The Star
Firms keen to list on SGX
SINGAPORE: Interest from Singapore firms to list on the local bourse via initial public offerings (IPOs) and reverse takeovers (RTOs) has been returning ahead of a US$5bil capital injection that is expected to help revive the local stock market. 'We are currently working on several listings, including the Yangzijiang Maritime spin-off and the proposed RTO involving Sincap and Skylink Apac, both expected to list on the Singapore Exchange (SGX) within the year,' Ong Hwee Li, chief executive of corporate finance firm SAC Capital, told The Straits Times. This follows April announcements by SGX-listed Yangzijiang Financial to spin off its maritime investments into a separately listed company, and by Sincap Group to acquire vehicle leasing firm Skylink for S$42.3mil via an RTO, paving the way for Skylink to become publicly listed. SAC Capital is also advising 'two to three' local IPO aspirants in sectors including events management, real estate management and natural resources. These firms expect to list on SGX in 2026. 'We are receiving more listing inquiries, about one to two per month, from companies in other industries like construction, food and beverage, technology, and financing sectors, highlighting renewed interest in IPOs,' Ong said. He added that SAC Capital's IPO pipeline is now full, with much stronger investor interest in book building compared with 2024. Book building is a stage in the IPO process where investors bid for the number of shares they want at certain price points, which helps corporate advisers gauge demand for a company's shares and how to price them before they are listed on the stock exchange. These developments are being fuelled by a central bank-led programme to allocate US$5bil in seed capital to Singapore-based funds for investing in local stocks which are not on the benchmark Straits Times Index (STI). The STI tracks the performance of the top 30 largest and most liquid companies listed on SGX. Announced in February as part of a string of measures to revive the Singapore stock market, the programme has received positive interest from global fund managers. Suitable investment strategies will be shortlisted by end-September, the Monetary Authority of Singapore has said. Analysts reckon the funds will likely be deployed before the end of 2025. Listing interest has gained momentum as a result. On June 6, Bloomberg reported that Hong Kong-based Link-REIT is considering listing a real estate investment trust (REIT) in Singapore that would include some of its properties outside of China and Hong Kong, while Japan's Nippon Telegraph and Telephone in its earnings release in May said it plans to list its data centre REIT on the SGX. In May, Reuters reported that at least five companies from mainland China or Hong Kong are planning IPOs, dual listings, or share placements in Singapore in the next 12 to 18 months. The companies include a Chinese energy company, a Chinese healthcare group, and a Shanghai-based biotech group. In April, LHN Group announced plans to take its co-living business Coliwoo Group public on the SGX. The real estate management services group, dual-listed in Singapore and Hong Kong, said it has submitted applications in both places for the proposed spin-off and separate listing of the shares of Coliwoo on the mainboard of SGX. In January, Centurion Corp said in a bourse filing that it is exploring the establishment of a REIT involving some of its worker and student accommodation assets that it plans to list on the SGX main board. US data security firm AvePoint, which trades on Nasdaq, in January also filed for a secondary listing in Singapore. If they take place, these listings will give the SGX a much-needed boost after the bourse saw just four IPOs in 2024, a record low. The bourse has hosted just one notable IPO in 2025, that of automotive group Vin's Holdings, which is now trading at 29 US cents, close to its IPO price of 30 US cents. Key to their success is how the shares are traded post-listing, Ong said, noting that many IPOs, particularly on Catalist, are too small and have controlled floats, where a company limits the number of shares available for public trading. While a limited float may initially create strong demand and price momentum, it also means there is little market depth to absorb selling pressure once investor sentiment shifts. Ong noted that SAC Capital encourages retail participation in the IPOs it manages by offering automated teller machine (ATM) tranches, which allows retail investors to apply for shares directly through their bank ATMs. He added that retail investors who receive shares through the ATM tranche tend to trade more actively, contributing to a more diversified and engaged shareholder base post-listing. — The Straits Times/ANN
