Lithium Bulls Getting Ahead of Themselves on China Supply Cut
Lithium stocks began the week with a bang, chasing prices for the battery metal higher after China's Contemporary Amperex Technology, or CATL, said its license for a mine in Jiangxi province had expired and that production there had been suspended.
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CNBC
24 minutes ago
- CNBC
White House says it's working out legality of Nvidia and AMD China chip deals
The Trump administration is still working out the details of its 15% export tax on Nvidia and AMD and could bring deals of this kind to more companies, the White House's Karoline Leavitt said Tuesday. "Right now it stands with these two companies. Perhaps it could expand in the future to other companies," said Leavitt, the White House's spokesperson. "The legality of it, the mechanics of it, is still being ironed out by the Department of Commerce, and I would defer you to them for any further details on how it will actually be implemented," she continued. President Donald Trump confirmed on Monday that he had negotiated a deal with Nvidia in which the U.S. government approves export licenses for the China-specific H20 AI chip in exchange for a 15% cut of revenue. Advanced Micro Devices also got licenses approved in exchange for a proportion of its China sales, the White House confirmed. "I said, 'If I'm going to do that, I want you to pay us as a country something, because I'm giving you a release,'" Trump said Monday. "We follow rules the U.S. government sets for our participation in worldwide markets," Nvidia said in a statement this week. Trump said the export licenses for AMD and Nvidia were a done deal. But lawyers and experts who follow trade have warned that Trump's deal may be complicated because of existing laws that regulate how the government can charge fees for export licenses. The Commerce Department didn't immediately return a request for comment. The H20 is Nvidia's Chinese-specific chip that is slowed down on purpose to comply with U.S. export relations. It's related to the H100 and H200 chips that are used in the U.S., and was introduced after the Biden administration implemented export controls on artificial intelligence chips in 2023. Earlier this year, Nvidia said that it was on track to sell more than $8 billion worth of H20 chips in a single quarter before the Trump administration in April said that it would require a license to export the chip. Trump signaled in July that he was likely to approve export licenses for the chip after Nvidia CEO Jensen Huang visited the White House. The U.S. regulates AI chips like those made by Nvidia for national security reasons, saying that they could be used by the Chinese government to leapfrog U.S. capabilities in AI, or they could be used by the Chinese military or linked groups. The Chinese government has been encouraging local companies in recent weeks to avoid using Nvidia's H20 chips for any government or national security-related work, Bloomberg reported on Tuesday.
Bloomberg
24 minutes ago
- Bloomberg
Rules of the Game for Chipmakers Selling to China
Horizon Investments CIO Scott Ladner says the market is starting to understand the hoops that chipmakers have to jump through to sell into China, but still face questions on the political front. Ladner speaks with Caroline Hyde and Ed Ludlow on 'Bloomberg Tech.' (Source: Bloomberg)
Wall Street Journal
an hour ago
- Wall Street Journal
A Record Corn Crop Pushed Prices to Five-Year Low
Corn futures prices tumbled more than 4% Tuesday to their lowest price since 2020 after federal crop forecasters surprised traders by predicting the biggest U.S. harvest ever in their monthly report. U.S. farmers planted a lot more corn this year at the expense of soybeans. They did so fearing a repeat of 2018, when President Trump's trade war with China prompted retaliation from the big soy-buyer, which punished U.S. farmers by switching to Brazilian beans.
